|
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Ignore convention. Do not follow the crowd. Ignore the
market, the crowd, and its fashions. Do your own research – and
do it thoroughly. |
Warren
Buffet |
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|
Do not switch holdings frequently. Expect to hold your investments
for ever. Do not avoid holding cash. |
Warren
Buffet |
| |
Often,
investors in
high-growth companies are disappointed
not because the
→
growth projections were wrong, but because the
implicit assumptions that the market is making about the sustainability of
these companies' competitive advantages are too optimistic. |
| |
Warren Buffett
said it best in his Fortune article: "The key to investing is not assessing how much an industry
is going to affect society, or how much it will grow, but rather determining
the competitive advantage of any given company and, above all, the
durability of that advantage. The products or services that have wide,
sustainable moats around them are the ones that deliver
rewards to
investors." |
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