Long Term Value Investing
Based on the principles developed by value investors such as Benjamin Graham, Warren Buffet, Peter Lynch, Mohnish Pabrai, and others. Key principles are:
-
Stick With Long Term Value Investing Strategies.
-
Invest in What You Understand.
-
Invest Like You Are Buying the Entire Company.
-
Companies with Competitive Advantages.
-
Find Quality Companies.
-
Keep Cash On Hand.
-
Require a Margin of Safety.
-
Compounding and Patience.
To achieve these principles, you need to have a practical set of tools and skills:
-
valuation methodologies to identify securities below their intrinsic value
-
good understanding of a business with an economic moat
-
historical perspectives on a business and its culture
-
management style fit and management transparency
-
identify good sources of research tools and information
-
ability to screen for undervalued securities and focus on a few quality companies that you understand
-
stock portfolio risk management
-
and most difficult of all is knowing your circle of competence