“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
“There seems to be an unwritten rule on Wall Street: If you don’t understand it, then put your life savings into it. Shun the enterprise around the corner, which can at least be observed, and seek out the one that manufactures an incomprehensible product.”
In investing, like baseball, you never see the same pitch twice. You’ll never know what pitch is coming, unless you’re the Astros.
The best any investor can do is understand their businesses that they own and buy them at a good price. That being said, we’re not just any investors. So we like to have a set of criteria:
- Creating long term share holder value
- Has a plan to or is actually making money #WeWork
- Is growing their operating cash flow at a meaningful rate
- Has a moat or brand that will allow them to succeed in the future
- Utilize outstanding shares in a friendly shareholder fashion
- Companies that can be a multi-bagger for your portfolio
We generally adapt what we’re looking for based on the company that we’re evaluating. This is why we stress factors such as: the industry, growth prospects, and competition. Each stock is like a box of chocolates though. You never know…unless you’re the Astros.
Most importantly, we’re flexible to any situation that can provide a reasonable investment based on intrinsic value.