OWNER PRINCIPLE

OWNER PRINCIPLE

The cumulative effect of these principles is a characterization of the value investor’s role in corporate investing as the owner of not just stock, but a business.

Hence the principles of business analyst, moat, margin of safety, and son-in-law.

It requires appreciating stock selections in the same way the owner of a small business treats decisions concerning his store, farm, or firm.

It requires a long-term view and means avoiding the rapid-fire share turnover characteristic of so many short-sighted market traders.

That’s what value investing is.

Also read: 10 TENETS OF VALUE INVESTING

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