Alliance Partners

Sunday, September 11, 2016

10 rules for equity investing

Great tips from John Cleese and Aberdeen



10 rules of equity investing - great video clips by Aberdeen and John  Cleese
1. Who controls the company - are they aligned with shareholders - do you trust them 
2. The most important asset is its people - what is quality of people and culture 
3. Strong Balance sheet is key - a company has to sustain and overcome issues 
4. Understand what you are buying - if something is too good to be true - and you don't understand it -  it probably is 
5. Think long term - avoid getting involved in daily noise of market fluctuations - gray investments need time to grow 
6. Benchmarks are for measuring - don't just follow the crowd - think different to  the benchmark 
7. Be wary of over-ambition and companies delving into something that's not in their area of expertise
8. Do your own research - don't only rely on brokers - visit the company - make your own assessment
9. Take advantage of irrational Behavior - arbitrage - markets are driven by humans - humans are irrational - buy low sell high
10. Make sure that the competitive advantage of the company is sustainable 

No comments:

Post a Comment