Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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Saturday, 8 August 2009
Stockholders should know whether their company is a prosperous and successful one.
Stockholders should know whether their company is a prosperous and successful one. The standard test here is average earnings on invested capital.
If the company is prosperous, the stockholders should insist on a dividend policy which will give them an adequate return on the intrinsic value of their investment.
If the company is not a prosperous one, the stockholders should insist on knowing why.
They should try to find out whether the management is competent; if it is not, they should insist on changing it.
If the earnings, the dividend returns, and the average market price of their shares are unsatisfactory in relation to the minimum value of the enterprise, they should constantly raise the question as to what changes should be made in policies, in corporate setup, or in the enterprise as a whole, in order to improve the position of the owners of the business.
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