Thursday, August 16, 2012

Some basic rules for active smart investing

• Think of stocks as businesses.
• Invest only in a very few select companies which offer a large margin of safety.
• Buy a meaningful amount on each stock selected.
• Keep a very low portfolio turnover (avoid transaction costs).
• Invest for the long term. You should be prepared for the inevitable market ups and downs which often represent opportunities.
• Ignore market forecasts.
• Never leverage.