Business Tenets: Is the business simple and understandable? Does the business have a consistent operating history? Does the business have favorable long-term prospects? Management Tenets: Is management rational? Is management candid with its shareholders? Does management resist the institutional imperative? Financial Tenets: Focus on return on equity, not earnings per share Calculate “owner earnings” Look … More Investing Wisdom Series 6: Tenets of Warren Buffett Way [3 Mins]
Declining sales and launches over the last 4 years led to slow down in the real estate activity across the board.
“If you are shopping for common stocks, chose them the way you would buy groceries, not the way you would buy perfume.” “Obvious prospects for physical growth in a business do not translate into obvious profits for investors.” “Most businesses change in character and quality over the years, sometimes for the better, perhaps more often … More Investing Wisdom Series 5: Lessons from Ben Grahman [5 Mins]
Quick checklist from the book ‘The Art of Short Selling’ written by Kathryn F.Staley. One of the masterpieces on the art of short selling. A checklist for shorting stocks: Analyse the financial statements Fuzzy assets, inventories, receivables Proxy statements Cash flow is the King! Greed and Sleaze Management pay scheme Proxy statements Options awarded to … More Investing Wisdom series 4: Checklist for shorting stocks [7 mins]
Dear Readers, I have decided to launch the investing wisdom series where on a weekly basis I will be sharing strategies and styles of various successful investors across the globe. The idea is to consolidate all the strategies and styles in one place so that it becomes a ready reckoner for all the budding investors. … More Investing Wisdom series: Launch