Arif
Full time employment: Posting here.
- Joined
- Jun 21, 2005
- Messages
- 761
Disclamer: Not trolling and not advertising.
Has anyone read the book Rule #1? It goes into quite a bit of detail on investing in individual stocks that outperform the market and uses Warren Buffet as a model. Based on what I read so far here is what to look for:
1. Buy the business not the stock
2. Identify a moat around the business (sustainable advantage)- He breaks this down even further with the different types of moats.
3. Bet on the management of the company
4. Demand a margin of safety
5. Calculating the right price to pay for the business
6. Invest in a business that you have an interest in
There are a few more topics but to me these are the major ones. This is the first book that I've read on individual stocks that didn't go over board on things like discounted cashflows that make my eyes glaze over. Nothing earth shattering revelations but it is clear, concise and his explanations make sense.
I am going to try it with a hypothetical portfolio and see how it does.
Has anyone read this book and implemented it?
Has anyone read the book Rule #1? It goes into quite a bit of detail on investing in individual stocks that outperform the market and uses Warren Buffet as a model. Based on what I read so far here is what to look for:
1. Buy the business not the stock
2. Identify a moat around the business (sustainable advantage)- He breaks this down even further with the different types of moats.
3. Bet on the management of the company
4. Demand a margin of safety
5. Calculating the right price to pay for the business
6. Invest in a business that you have an interest in
There are a few more topics but to me these are the major ones. This is the first book that I've read on individual stocks that didn't go over board on things like discounted cashflows that make my eyes glaze over. Nothing earth shattering revelations but it is clear, concise and his explanations make sense.
I am going to try it with a hypothetical portfolio and see how it does.
Has anyone read this book and implemented it?