RE:RE:RE:RE:RE:Is the market efficient? - NoThanks TLV for articulating this so neatly into something I can easily digest and take away.
Gotta love common sense rules and this is a great "package" that echoes Warren Buffet
WRT 3) I have turned away and cut ties with people in my past to esnure I only dealt with honest people.
Most memorable was someone who approached me to help him raise financing for his business.
Strike number one was recent bankruptcy. Now I would never have seen this person but it was a referral from a valued client and I wanted to help if I could. So I went to see him at his premises.
His business was the short term rental of unique items; smaller ecclectic things, like carousel animals, furniture, decorative items, in styles ranging from antique to midlatehereandnowwhatever.
Being surrounded by these items as I came in led me to think he was at least not in that bad shape with inventory and recent bankruptcy but when I asked him how he'd financed\funded all the things I was surrounded by ......??
He'd hid it all from the trustees just before going bankrupt among friends who'd then returned them afterwards.
I left him after some more polite conversation and later felt compelled to ensure I had no reporting responsibilities to the trustees or courts for the fraud
4) I like this one here and I've heard this also expressed as "you make your profit when you buy, not when you sell". This one incidentally came to me 30 some years ago from an older gentleman who came to install a new garage door at my house. Pearl of wisdom.
What is of interest to me is say 3 key questions you ask yourself that satisfy you that your concerns are met.
I love questions based on isight and wisdom and that are leading....that is... phrased in a way that provides direction and guidance towards answers you need to make decisions properly
Do you have any of those?
Thelongview wrote: It all just comes down to common sense. No class can teach you that. In my view, anybody can do well if you:
1) Only buy businesses you understand
2) Make sure the business has a long-term competitive advantage (so very important)
3) Make sure it has honest and competent management
4) Don't overpay for the business
5) Hold it for a long time (a great business with the above attributes will do very well for many, many years and so patience is important).
Back when I was in the industry, I once made a comment that the next twelve months, for a specific stock that was being discussed, had no meaning and we should not focus on it. The point that I was attempting to make but was cut off before I could finnish, was that our investors would be much better served by us focusing on a much longer time frame because the company had a competitive advantage that was developing.
The reply that I was greeted with was: "Oh no. I don't want your opinion about twelve months. That's too long term. It's six months I'm interested in". Something to that effect.
If you've invested some of your funds in GH, you have a good investment mind.