My fav pts from the summary, ended up being almost the entire summary.
Basics of Value Investing system and important points from "Worldly Wisdom" and "The Right Stuff". ⬇️
The Principles of Value Investing system.
Of course the quant formulas from 80 yrs ago based on Book Value & Tangible capital doesn't apply as much today, but the principles of Intrinsic Value, Margin of Safety (in Quality & Quantity), Market psychology will always be relevant.
More investing principles ⬇️
Some important points form The Psychology of Human Misjudgment⬇️
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"7 Powers: The Foundations of Business Strategy" by Hamilton Helmer is a highly useful book for anyone interested in investing in high quality Co.'s for the long-term.
(Yeah yeah, these are all FinTwit favs, no originality points there, I know).
I would rather keep or add to my capital to the
-Well capitalized secular growth Co.'s with
-innovative & well executing Mgmt. Teams
-high Margin recurring revenues
-Co.'s offering effective solutions by leveraging the latest tech
-developing Network effects/Switching costs.
Investing is as complicated as you want to make it.
To keep it simple, few questions I ask myself during the high volatility periods
✔️Do I understand these Companies, their Industry, underlying trends and would like to hold them for the next 5 yrs? Yes
My fav investing Teachers & what I learned from them.
✔️Long-term focus🔭
Warren Buffett
Charlie Munger
Chuck Akre
✔️Growth📈
Philip Fisher
Clayton Christensen
David Gardner
✔️Behavioral🧠
Benjamin Graham
Howard Marks
Seth Klarman
✔️Process🗒️
Peter Lynch
Pat Dorsey
Nick Sleep
Some key points on each.
✔️Long-term focus
Buffett : Business Owner mindset (as an investor) will prompt you to think/act long-term. Time is a friend of excellent Business and a foe of the mediocre ones.
Munger : Learn and practice multi-disciplinary thinking. Patience & common sense are rewarded in the long-term.
Akre : Developing a simple approach (for buying/holding) that will help you stay with the good companies for a long time.
Understanding the Market cycles and the factors that impact them (Capital availability, attitudes towards risk, optimism/pessimism taken to extremes) can be really helpful for long-term investors.
✔️On what causes Cycles and why trends go to excess