“Be fearful when others are greedy, and be greedy when others are fearful”
– Discipline and Patience
– Long-range Perspective
– Focused Portfolio
– Fundamental Analysis
– Margin of Safety
– Superior Returns
- Do not chase a stock. Just take a strike or wait for a pull-back in the price.
- Be price-aware, but never be too concerned about short-term price movements. Long-term focus provides the investor with a competitive advantage in the market.
- Keep dry powder on hand—buy in incremental stages instead of opening up a full position with your first purchase.
- Liquidity is key. It enables you to play offense when markets are depressed.
- Be mindful of both transaction costs and tax implications when managing the portfolio.
- Focus on what’s important and knowable
- Don’t buy based on macro-analysis – value investors are bottom up investors.
- Primary focus is the intrinsic value of the enterprise.
- Asset quality is paramount
- Know the financial position of the business.