In order to be a successful investor, you need a proven, rational framework.
My Investing Blueprint has ten steps.
- Search Broadly and Continually for New Investment Ideas.
- Act Like an Owner.
- Only Buy Things You Understand.
- Buy Good Businesses.
- Invest in Companies with Great Management.
- Buy the Cheapest Business Available.
- Focus on Your Best Ideas.
- Practice Patience.
- Avoid Stupid Mistakes.
- Be a Learning Machine.
The following are additional posts for each of the ten steps.
1. Search Broadly and Continually for New Investment Ideas.
- The Limitations of 13F’s
- Search Tools
- 13 Ideas to Improve Your Search Strategy
- Small Stock Investing: The Path to Riches?
- More Thoughts on Small Cap Investing
- How to Use the Time You Devote to Investments
- Buffett on How to Allocate Capital
2. Act Like an Owner
4. Buy Good Businesses.
- The Mark of a Good Business: High Returns on Capital
- The Mark of a Good Business: High Returns on Capital (Part 2)
- The Mark of a Good Business: High Returns on Capital (Part 3)
- Another Reason Why Investing in a Good Business Makes Sense
- The Importance of Clarity in Valuing a Business
- The Ability to Reinvest Capital – The Mark of Investments that Generate Wealth
- Thinking about American Express’s Competitive Position
- The Financial Performance of Wide-Moat Companies
5. Invest in Companies with Great Management.
- Buffett Taps Combs – Confirms Principles
- Berkshire’s Scott Fetzer: A Lesson in Durable Competitive Advantages
- 6 Ways to Evaluate Whether Management is Capable and Honest
6. Buy the Cheapest Business Available.
- Acquisition Values
- EV/EBIT Ratio Trumps P/E Ratio
- Buffett: Growth vs. Value is a False Distinction – It’s What You Get for Your Money
7. Focus on Your Best Ideas
8. Practice Patience.
- A Framework for Selling a Stock
- Patience and Finding an Edge
- Patience Plus a Great Franchise Can Make You Wealthy
- Leading with Patience – The Will to Wait
9. Avoid Stupid Mistakes
- On the critical task of risk management
- Financial Porn
- A few good lessons from Buffett
- A Blueprint for Being a Lousy Investor
- More on Investing Checklists
- Charlie Munger: What Would he Make of Stock Recommendations and Incentives?
10. Be a Learning Machine.