10 TENETS OF VALUE INVESTING

10 TENETS OF VALUE INVESTING

Value investing is ultimately common sense applied to capital allocation.

Its general philosophy and key tools can be summarized in the following 10 value-investing tenets.

1. MR. MARKET PRINCIPLE
2. BUSINESS ANALYST PRINCIPLE
3. REASONABLE PRICE PRINCIPLE
4. PATSY PRINCIPLE
5. CIRCLE OF COMPETENCE PRINCIPLE ****
6. MOAT PRINCIPLE
7. MARGIN OF SAFETY PRINCIPLE ****
8. IN-LAW PRINCIPLE
9. ELITISM PRINCIPLE
10. OWNER PRINCIPLE

That's what value investing is.