Wednesday May 25, 2022

There are several ways to select the correct action

Regardless of the methods used in the selection of the event, the investment of professionals has two things in common. They are disciplined and consistent, not changing their approach. Think a lot about what you are doing and how you are doing it, but pay little attention to what the market did first.

Who is here f?
Konen investin manaei wants to see that society is run by people who, in the words of William Nygren of Oakmark, “think like owners, not like manaei.” There are two easy ways to know this – ask yourself the following questions: are the company’s financial statements easy to understand, or are they confusing and confusing? Are the “unrepeatable” or “extraordinary” and “unusual” items actually as their name suggests? Or do they, on the contrary, have a bad habit of repeating themselves?

In the series of books from the book of the most important investment advisor of the 20th century, learn from the most dedicated “investment guru” how to avoid these mistakes as an investor, broker or investment advisor and how to implement long-term investment strategies.
Even with a degree in economics or finance, Benjamin Graham soon became not only a full-fledged investor and portfolio manager, but also a leading theorist. If a number of things that are written in finance, often after a few months, even a little silly, Graham’s principles published many decades ago seemed to be more likely to go down in time and truth
.

Mason Hawkins of Longleaf searches for companies who are “good partners” – which means that they can openly discuss issues, have clear and understandable ideas about the sources of future cash flow of the company and also know the shares in the company (preferred shares, for own pensions, not through the receipt of stock options). However, “if management is talking about stock prices rather than corporate companies,” warns Robert Torray of the Torray Fund, “we have no interest.” Christopher Davis of the Davis Fund favors companies, limiting the issuance of stock options to approximately 3% of the total shares issued.

Howard Schow of the Vanguard Primecap Fund tracks what the company said in one year and what happened next. “We want to see if the management is focused not only on the shares, but also on itself.” you can join regular conference calls with the company’s shareholders, even if you only own a few events; Find out about the fulfillment of these teleconferences either directly at the investor relations department of the company or on its website.

Robert Rodriguez from the investments of the FPA Capital Fund always looks at the back of the company first, where the names of the directors of operating divisions or subsidiaries are listed. If these names are often held during the first or second year when he is the new CEO, it is a good idea; probh istc process. However, if the course continues, then the turn to the better will again resemble a somersault.

Take the road

Roads other than these lead to Jerusalem. Some leading investment managers, such as David Dreman of Dreman Value Management and Martin Whitman of Third Avenue Funds, compete with companies whose shares are traded at very low assets, profit and cash flow. Jin, such as Charles Royce of Royce Funds and Joel Tillinghast of the Fidelity Low-Priced Stock Fund, hunting undervalued had companies. And the way the largest investor, Warren Buffett, selected the shares at the same time, we briefly tried to describe them.

One uiten pomcka

Find out which of the top professional investment managers own the same shares as you. If one or two names still appear in you, take a look at the websites of these Internet companies and download their latest reports. See who gave the shares the funds he owns, so you can learn more about the properties they have together; By commenting on the investment manager, he gave tips on how to improve his own approach.

Regardless of the methods used in the selection of the event, professional investors have two things in common: first and foremost, they are disciplined and consistent, refusing to change their approach, even if they are not in the middle. Secondly, think a lot about what you are doing and how you are doing it, but pay little attention to what the market first said.

“The Smart Investor” is by far the best book ever written about investing. It is one of the thinnest publications of its kind, but so paradoxically perhaps most ignored in practice. Such is human nature. We just want to put everything together.

Warrennew basket
Graham’s best student, Warren Buffett, has become one of the most likely investors, also because he has given Graham’s thinking a new dimension. Buffett and his partner Charles Munger have served Graham’s security policy and impartiality in the market with their own innovative focus on future growth. Here is a very important example of Buffett’s approach:

Buffett has always sought out companies with a so-called franchise, ie with a strong business character, an easy-to-understand business object and enormous financial strength, they have a small monopoly in their industry, such as H&R Block, Gillette and the Washington Post. Buffett always tried to jump for such companies at a time when a company like a storm cloud blew some scandal, a big loss or something else at first, such as when he bought Coca-Cola shares soon after the catastrophic failure of New Coke and the collapse of the entire stock market. market in 1987. So he always saw managers setting realistic tariffs, generating the company’s growth organically, externally, not just through acquisitions, distributing capital resources and not paying hundreds of millions of dollars of jackpots in the form of stock options. Buffett required stable and sustainable profit growth for the company to have more value in the future, not today.

In his first accounts, archived at www.berkshirehathaway.com, Buffett presents his thoughts as an open book. Probably another investor, as Graham adds, did not publicly reveal so much of his approach and did not write irresistible links. (One classic of Buffett’s words: “When the management with the rise of genius embarks on the women of society with the rise of bad management, only the reputation of society will remain untouched.”) Every intelligent investor can – and should – use the words of this master.

The purpose of this revised edition of The Smart Investor is to apply Graham’s ideas to the conditions of the current financial market, and still leave its original text intact (with the exception of notes under the explanatory note). Each Graham chapter is followed by a commentary. In these original shadows after the original text, there are also current examples, on which it is best to observe how current and how liberating remain Graham’s principles even today.

from the book: The Intelligent Investor

1. dl: Even a cautious investor will make time for it
2. dl: Speculation spe enrich someone else not vs
Length 3: Opposite investment tricks mean death
4. dl: You have to take speculation in the same way as casino games
5. dl: The investor and the speculator must pay attention to the forecasts of market development
6. dl: Mazan investor buys on the intermediate market and sells on bm
7. dl: A wise investor does not know that daily fluctuations do God
Length 8: A fearless investor can make up for stock market mistakes
Type 9: The investor must not allow the market to disturb him
10. dl: The price of the action is affected by five key areas
11. dl: Look at the pitfalls of the “earnings per share” indicator
12th dl: Bdl investor watches ethnicity business backwards
Debate 13: A prudent investor chooses only quality bonds
Step 14: Diversification increases the decision of the first decision
15. dl: Pessimistic shares can pinst unexpected profit
16. dl: An investor with a good judgment uses a simple criterion
17. dl: Ostrait investor vyuv neekanch situac
18. dl: Zkuen investor selected shares, their price fell

ADVERTISING

ryvek is from the book
“Intelligent investor”

vydan publishing houseCity Publishing,
vce information can be found at
www.grada.cz

Back to Top