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Happy Value Investing
Sunday, July 29, 2007
Quote of the day
Forget mistakes. Forget failures. Forget everything except what you're going to do today and do it. Today is your lucky day. - Will Durant
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Tenets of Warren Buffett Way
- Is the management shareholder oriented?
-Is management capable, honest, rational and candid?
- Moat (dominant business franchise)
- MARGIN OF SAFETY
- Can business be purchased at a significant discount to its value?
- What's the value of business?
- Make sure for every dollar retained creates more than one dollar
- Look for companies with high profit margin
- Calculate owner's earning
- Focus on ROE, not EPS
- Does management resisit institutional imperative?
- Is management candid with shareholders?
- Is management rational?
- Does business have favorable long term prospects?
- Is business simple and understandable?
- Does Business have consistent operating profit?
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