1. Earnings per share:
This important metric must not be used blindly, as it can be manipulated or improved through higher risks such as leverage, and accounting gimmicks.
2. Power of compounding.
3. "Neither a short-term borrower or a long-term lender be." (In most cases you are better compensated for risk by equities than bonds, in the long run. However, this must be implemented with a grain of salt.)
4. "Companies obtain the shareholder constituency they seek and deserve"
A focus on long-term profitability instead of short-term high flying attracts long-term investors. Pick your game, tinker with it a little from time to time, but be largely consistent.
5. " 'Turnarounds' seldom turn. "
6. A "good business at a fair price is better than a poor business purchased at a bargain" (Sometimes, however, if you are being able to buy a bad business at a value blow that of the fixed assets, you could close shop and sell the fixed assets at a profit)
7. "Despite a fancy price tag, the 'easy' business may be the better route to go" (Yet, you most certainly don't want to engage in fad-investing)
8. Some failures are not "reflections on managers, but rather on the industry in which they operate"
9. "Better to stick with business you understand" even if the frequency of business decreases.
(Of course, a balance is essential.)
10. "Mistakes will not be cured immediately or without cost"
11. It is often "futile, trying to be very clever in an area where the tide is running heavily against you"
This important metric must not be used blindly, as it can be manipulated or improved through higher risks such as leverage, and accounting gimmicks.
2. Power of compounding.
3. "Neither a short-term borrower or a long-term lender be." (In most cases you are better compensated for risk by equities than bonds, in the long run. However, this must be implemented with a grain of salt.)
4. "Companies obtain the shareholder constituency they seek and deserve"
A focus on long-term profitability instead of short-term high flying attracts long-term investors. Pick your game, tinker with it a little from time to time, but be largely consistent.
5. " 'Turnarounds' seldom turn. "
6. A "good business at a fair price is better than a poor business purchased at a bargain" (Sometimes, however, if you are being able to buy a bad business at a value blow that of the fixed assets, you could close shop and sell the fixed assets at a profit)
7. "Despite a fancy price tag, the 'easy' business may be the better route to go" (Yet, you most certainly don't want to engage in fad-investing)
8. Some failures are not "reflections on managers, but rather on the industry in which they operate"
9. "Better to stick with business you understand" even if the frequency of business decreases.
(Of course, a balance is essential.)
10. "Mistakes will not be cured immediately or without cost"
11. It is often "futile, trying to be very clever in an area where the tide is running heavily against you"