Trading Strategy
Buy and hold quality businesses below intrinsic value. Focus on return on equity, profit margins, and the strength of the business franchise. Concentrate positions in high-conviction ideas.
Key Principles
- Be fearful when others are greedy, and greedy when others are fearful
- Price is what you pay, value is what you get
- Our favorite holding period is forever
- Risk comes from not knowing what you are doing
- Only invest in businesses you understand