Strategy

Hunt for bargains. Add when the price is right.

Be patient like a dragon.

Own Great Compounders

  • Own businesses so strong they keep on winning without constant attention.
  • A good test of that is if the service or the product increases by 10-20%, would they keep their customers?
  • Find a company that makes great bets, so that they can keep innovating and go beyond the planned trend line.

Add Only at the Right Price

  • Use the DCF analysis to help you find a good moment to add more to the position
  • It’s all about finding difference between the intrinsic value and actual value of the stock
  • This is why looking at a few different companies with a similar DCF framework makes sense

Forever is the Baseline

  • Time in the market beats timing the market 
  • I look at companies with a long-lasting business ahead of them
  • Patience is the ultimate key to success in investing
  • I only sell if the company ran way too much or if the long-term business opportunities change drastically. Since this would reduce the expected revenues and cash flows which could devalue the stock.

Sources:

1: 

2: Margin of Safety | Stock Multiples | DCF and Intrinsic Value

3: The Cost of Waiting | Dollar-Cost Averaging vs Investing a Lump Sum | When to Sell

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