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| The best book ever. |
1. Motto of
the book: “Margin of safety”. Always try to get 30% discount of the underlying
value when you buy a share.
2. For most
investors it pays to be defensive and use diversification.
3. When you
speculate you are not protected by the margin of safety: you either win or
lose.
4. A good
investment always has a margin of safety.
5. Buy when
the market is depressive and all the others are selling out.
6. Avoid the largest companies when you buy shares. Often their price is too high.
Smaller companies have a tendency to perform better on the stock market.
7. Never let
anyone else handle your money.
8. Stay away
from trades where you have little to win and much to lose.
9. Trust your
own knowledge and experience.
10. Investment is most intelligent when most businesslike and non-speculative. (Think
as if you were buying the whole company.)
