WB: The Investors Investor Flashcards
Business world is divided into two - a tiny number of wonderful businesses - well worth investing in at a price and a huge number of mediocre businesses that are not attractive as long term investments
On a rare occasion, when a wonderful business is given away, BUY boldly, paying no attention to current gloomy economic and stock market forecast.
What are gross revenue royalties?
Companies which benefit directly from the large capital investment of the customers they serve and require little working capital to operate. In fact, they pour off cash to their owners
It is madness for an investor buying stock to have anything else in mind other than the operating realities of the business
Those on wall street who talk of the stock trend or institutional ownership are combining laziness with ignorance.
What is an enormous advantage for independent investor
He can wait for the perfect pitch. Wait for the bargain but for the particular one that you understand and know to be a bargain
What are smokestack companies
The heavy industries whose obsolescence is often more rapid than their allowable depreciation. They need to retain a large part of earnings just to stay where they are - to replace rapidly aging facilities or to keep pace with competition
