Value investors:
Distinguishing features
(1) You are a business owner.
(2) As you own business, insight (big ideas) into many businesses.
So that you can bet big when all the factors come together in your favour, a huge wave behind you. With that insight, you will be willing to bet, based on your complete insight.
As you get better and better, you establish a good insight. Continue to learn. You only need less than 5 minutes to smell out a good company.
The market is designed for traders and not designed for value investors. Those who trade will occasionally make mistakes, that is when you as a value investor comes in.
When you have the confidence to project a business earnings into next 10 or 20 years, why do you need to sell? These companies' valuations are usually established and are getting stronger and stronger.
Why is this business getting better and better, making more and more money? Why are some companies making money some years and making less money or not making money other years?
Sometime, companies coming from no where, somehow began to make an in-road into their industries and they become a monopoly. Observe the industry, determine when the threshold is crossed. Having this sort of insight is what you should have. Think Microsoft in its early years ... little by little, it crossed that line. Now with free browser sites, the dynamics affecting Microsoft are different.
Click here:
No comments:
Post a Comment