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Data:2009-12-12 2:34
Good companies have good stocks: those businesses clear and easy to understand, and consistently outstanding performance by a group of extraordinary ability, and able to operate the management the benefit of the shareholders of large companies is a good company.
The most accurate analysis of the company's point of view: If you are the sole owner of the company.
The most critical investment analysis: the competitive advantage and sustainability.
Best Competitive Advantage: alligator swimming very wide moat castle under the protection of the enterprise economy.
The best measure of competitive advantage: above industry average return on equity.
Economic concessions: Super Star Enterprises source of super-profits.
Stock picking as the selection his wife: good prices than the company well.
Stock picking as the election Husband: mystery than a sense of security.
The second law: the principle of cash flow
An acquisition of a new pharmaceutical and compare the value of a pharmaceutical company.
Valuation since it's art, but also a science.
Valuation is assessed her husband: the more money the more valuable.
Enterprise discounted value of future cash flows.
Assessed valuation is his wife: the more conservative and more reliable.
Buffett mainly uses return on equity, book value growth rate to analyze the future sustainable profitability.
Valuation is the estimate of love: the more simple and more correct.
Third Law: "Mr. Market" principle
Fears of others greedy, greedy when others fear.
In the market law of value: short-term but long-term tends to often not valid and effective.
The market in the Art of War: the use of market rather than by the market to use.
Fourth Law: the principle of safety margin
Margin of safety is the "insurance": insurance, the more the less the possibility of loss.
Margin of safety is the "slash price": the purchase price the lower the profit the greater the likelihood.
Margin of safety is the "catch a big fish": people less likely to catch big fish higher.
The Fifth Law: the principle of concentration of investment
Monogamy is the concentration of investment: the best and most understanding and minimum risk.
Measure the company's stock investment risk factors:
Concentration of investment is to family planning: the fewer stocks, portfolio performance better;
Focus on investing is gambling: When a high probability of winning big stakes nowadays.
Sixth Law: Long-term holders of the principle of
Long-term holding is the tortoise and the hare: the long term compound interest can triumph over everything.
Long-term holding is Haishishanmeng: and the like, accompanied by the company for life.
Long-term holding is the white-headed conjugal bliss: special conditions being 10,000 times more than sentimental.
Good company will be able to speak a word clear (Coca-Cola)
Good company will be able to speak a word clear (clean - out marriage) (Yu-chun Min order)
