What I learned from the best investors in the world.
1. Charlie Munger about the first $100k:
2. Peter Lynch :
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don't work out.
3. Joel Greenblatt:
Buy good companies (high ROC) that are cheap (high earnings yield) .
Greenblatt's Magic Formula returned 33% per year to shareholders.
4. John Templeton
Invest. Don't trade or speculate.
5. Benjamin Graham
Don't overpay.
The intelligent investor is a realist who sells to optimists and buys from pessimists.
6. François Rochon
Focus on companies with high margins and high returns on capital.
Time in the market beats timing the market.
7. Warren Buffett:
1. Buy good companies 2. Don't lose money 3. Always think for yourself 4. Don't overpay 5. Be patient
"If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with one hell of a result." — Charlie Munger
Here are 10 stocks with a return on capital > 20%:
1. Alphabet (GOOGL) ROIC: 32.1%
Alphabet is the parent company of Google, which makes money mainly through ads.
It also owns YouTube, Android, and invests in AI and other tech projects.
2. Eli Lilly (LLY) ROIC: 27.1%
Eli Lilly is a drug company known for making treatments for diabetes, cancer, and now obesity.
It’s growing fast thanks to its new blockbuster drugs.