Monday, December 31, 2012

The Focus Investor’s Golden Rules

(from Robert Hagstrom, The Warren Buffett Way, 2005)

§  Concentrate your investments in outstanding companies run by strong management.

§  Limit yourself to the number of companies you can truly understand. Ten to twenty is good, more than twenty is asking for trouble.

§  Pick the very best of your good companies, and put the bulk of your investment there.

§  Think long-term: five to ten years, minimum.

§  Volatility happens. Carry on.


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