Author: Mohamad Jeffrey Ismail | Publish date: Sat, 21 May 2016, 05:15 AM
1. Do your homework
Engage in the fundamental bottom-up analysis that has been the hallmark of most successful investors, but that has been less profitable the last few risk-on-risk-off-years.
2. Find economic moats
Unravel the sustainable competitive advantages that hinder competitors to catch up and force a reversal to the mean of the wonderful business.
3. Have a margin of safety
To have the discipline to only buy the great company if its stock sells for less than its estimated worth.
4. Hold for the long haul
Minimize trading costs and taxes and instead have the money to compound over time. And yet…
5. Know when to sell
If you have made a mistake in the estimation of value (and there is no margin of safety), if fundamentals deteriorates so that value is less than you estimated (no margins of safety), the stock rises above its intrinsic value (no margin of safety) or you have found a stock with a larger margin of safety.
没有评论:
发表评论