10 funny quotes on investing with meaningful lessons:
1. Price vs value:
“The stock market is filled with individuals who know the price of everything, but the value of nothing.” – Philip Fisher
2. Dangerous Months
“October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September...” – Mark Twain
3. Balance Sheet = a bikini
"You know, a balance-sheet is like a bikini, it shows more but it hides what is vital. I learned to read a balance sheet and then I got fascinated by stocks." – Rakesh Jhunjhunwala
Charlie Munger always used 4 criteria to buy stocks.
It allowed him to make good and rational investment decisions.
Let's dig into them:
Here are the 4 criteria of Charlie Munger:
1️⃣ The business must have a moat
2️⃣ You need to be able to understand the business model
3️⃣ Management must have talent and high integrity
4️⃣ There should be a margin of safety
1️⃣ The business must have a moat
A sustainable competitive advantage is crucial.
Seek for companies with a high and consistent gross margin as well as ROIC.