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