11Sep

10 rules for equity investing

Great tips from John Cleese and Aberdeen

10 rules of equity investing – great video clips by Aberdeen and John  Cleese
  1. Who controls the company – are they aligned with shareholders – do you trust them 
  2. The most important asset is its people – what is quality of people and culture 
  3. Strong Balance sheet is key – a company has to sustain and overcome issues 
  4. Understand what you are buying – if something is too good to be true – and you don’t understand it –  it probably is 
  5. Think long term – avoid getting involved in daily noise of market fluctuations – great investments need time to grow 
  6. Benchmarks are for measuring – don’t just follow the crowd – think different to  the benchmark 
  7. Be wary of over-ambitious companies delving into something that’s not in their area of expertise
  8. Do your own research – don’t only rely on brokers – visit the company – make your own assessment
  9. Take advantage of irrational Behavior – arbitrage – markets are driven by humans – humans are irrational – buy low sell high
  10. Make sure that the competitive advantage of the company is sustainable 
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