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people try and appear what they fear they are not.
-the secret of making money is to avoid risks
-the best investors are misers
-do not be guided by what people say, do nto tell people what you are doing
-choose on the basis of value no popularity
-keep permanent capital loss to a minimum (not short term quotational loss)
-85% graham which is value (graham), 15% growth (fisher)
-commodity businesses attract competition in good times. there are never 3 years of good potato prices as the farmers plant the sidewalks.
-franchise is a business that is almost impossible to compete with. the real test of a business is how much damage a competitor can do to it, even if he is stupid about returns. soem bsuinesses have large moats around them with sharks and crocodiles.
investing principles - buy good businesses (high roe, cash profits, predictable, inventory turns high, high rocapital, mgr thinks like owner, can raise prices, toll bridge business, definable character (not conglom).
a bad business - accounting profit not cash profit, dishonest mgrs, profoundly changes character over time, heavily indebted, not inflation proof nor long tail proof such as insurance or LT contract to supply product or service (such as uranium), large capital intensive busieness, when a mgt with a reputation for brilliance tackles a business with a reputation for poor economics, it is the reputation of the business that stays intact, govt regulation
in time market price will relfect value.
the market is manic depressive - this presents the opportunities the smart investor is looking for.
margin of safety.
a fool with money is soon invited everywhere.
seek situations where reality is diferent from perception.
how to invest like buffet - understand figures, apply your own experience, visit business, know values, avoid risk, steady compounding,never lose money,
-the secret of making money is to avoid risks
-the best investors are misers
-do not be guided by what people say, do nto tell people what you are doing
-choose on the basis of value no popularity
-keep permanent capital loss to a minimum (not short term quotational loss)
-85% graham which is value (graham), 15% growth (fisher)
-commodity businesses attract competition in good times. there are never 3 years of good potato prices as the farmers plant the sidewalks.
-franchise is a business that is almost impossible to compete with. the real test of a business is how much damage a competitor can do to it, even if he is stupid about returns. soem bsuinesses have large moats around them with sharks and crocodiles.
investing principles - buy good businesses (high roe, cash profits, predictable, inventory turns high, high rocapital, mgr thinks like owner, can raise prices, toll bridge business, definable character (not conglom).
a bad business - accounting profit not cash profit, dishonest mgrs, profoundly changes character over time, heavily indebted, not inflation proof nor long tail proof such as insurance or LT contract to supply product or service (such as uranium), large capital intensive busieness, when a mgt with a reputation for brilliance tackles a business with a reputation for poor economics, it is the reputation of the business that stays intact, govt regulation
in time market price will relfect value.
the market is manic depressive - this presents the opportunities the smart investor is looking for.
margin of safety.
a fool with money is soon invited everywhere.
seek situations where reality is diferent from perception.
how to invest like buffet - understand figures, apply your own experience, visit business, know values, avoid risk, steady compounding,never lose money,
