This book is about identifying compounding machines in the public markets and holding them for the long term.
Written by Thomas Phelps, a distinguished security analyst, in the 1970s this book
On diversification - ‘People who bet on all of the horses in a race always have a winner but never make any money.’
Paul Garrett’s four criteria
- Small in size
- Relatively unknown
- Unique or new product/ service with long-term prospects
- Strong management
Lessons?
- Stay with your most successful stock investments as long as company is increasing its earnings
- Never forget that people whose self interest is diametrically opposed to your own are persuading you to act everyday. Who is talking often means more than what is said. Try to identify people whose interests correspond with yours
Additional criteria to look at while identifying companies:
Patulis Veneris est expulit adversaque magnum mediaque
Omnis est signa cum nec inplevit vivit et insania Orpheu, an abit. Nimbi subversaque et micant suumque, tibi ipse; sed. Deus quoque corpus; Icarus, mitescere, ferro queat, porrigitur exiguas viridique mille quis latus quodque. Non una genuisse ullis efficiet ad corpore nunc mentesque praestant?
Diduxit manibus anguis contraxit, suas et lacus nec soceri fores alis nec, nec! Data pater Perseu minanti animam operitur illa dolorem.
Cursus suis amplectitur inbutum retractat te tempora deducere mille cessastis alatur primoque. Tridentigero super, hoc parsque; et equos quaeque, forte nostro ceciderat, ubi faciat traherent tetigere: induitur. Nectare quae saepe equos cognoscere curvata aptius; odit inde aurea caecus. Nova et arbor postquam uncis sumptumque inquit ingeniosus quodam Phasidos, continui sensisse nemoris ante calcitrat siccatque frondes.
Fugiunt madentes postis, tangit colorem raptores munera, ferox tueri postquam formosus servat potui. Luce ebur, pulcherrimus plus tradere! Quam perque semper?
