Author Archive
Finding A Good Business To Invest In
A good business is a business which you can more or less predict with confidence that over the long term, its going to increase its earnings, its profits every year.
As a result, increase in shareholder value and hence the share price. In other words, the share price will go up not because of speculation [...]
Would You Bet 10-Cents On A Game of Golf?
Let me give you an example to illustrate the power of compounding. Let’s say we played a game of golf and we made a friendly bet of 10-cent on the first hole, with the bet doubling on each hole. Would you take on this bet? Now, if you were familiar with the game of golf, [...]
Winning With Mutual Funds
A mutual fund (called ‘unit trust’ in Asia) is an investment vehicle that pools money from many individual investors. A professional fund manager invests and manages these funds into stocks, bonds and other securities.
People usually invest in mutual funds because it is offers the advantage of broad diversification (it spreads your money over tens [...]
The Strategy of the Master Investor
There are three major steps that master investors take and they are: 1) identify very good businesses, 2) buy them only at a huge discount and 3) wait for the market to realize its true value or overvalue it.
Step 1: Identify Very Good Businesses
Always remember that when you are buying a stock, you are not [...]
Modeling the Worlds Greatest Investor
How do you achieve excellence in any area within a short period of time? The key is through modeling. Modeling is the technique of finding role models who are the best in their field and then studying and distilling the mental models and strategies that make them the best in what they do. By learning [...]
