Saturday, 25 December 2010

Knowing a Business Leads to Investing Success. Act Like an Owner

Knowing a Business Leads to Investing Success
Written by Greg Speicher on September 29, 2010

Great investing may be simple, but it is not easy. It requires that you master not only a number of analytical skills, but also your own emotions.

One of the mistakes that investors make is spending too much time studying investment philosophy and process, and not enough time studying businesses. Investment philosophy and methodology will never be a substitute for knowing a business inside out.

When you come across a “millionaire next door”, he or she probably made their money by mastering a small corner of the business world, not spending endless hours studying management theory or entrepreneurship.

Think Rose Blumpkin. She had an advantage over her competitors because of her relentless focus on the furniture business.

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