A value investor's mind operates in a continuous buzz, deciding whether an investment is achieving its best possible returns or whether it should be replaced.
Value investors like cheap stocks, but if the stocks get cheap on an investor's watch, the investor should consider a serious reappraisal of a company's prospects.
Value investors continuously check for dead branches and aren't afraid to get out the pruning shears. Value investors know the cost of dead wood.
Likewise, the frugal citizens, value investors avoid squandering money that could be put to better use and always think of the best use for their capital. For Warren Buffett, a penny found on a sidewalk is "the start of the next billion."
No comments:
Post a Comment