No Investment is so Wonderful One of the Big Mistakes Value Investors Make

Pay up for Quality

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I’m probably more willing to pay up for quality than other value investors might be. Some of my investor friends often tell me my ideas are “too high-quality” for them. I would distinguish somewhat here from paying up for growth – I’ll pay more for a high-quality, slow-growing business. I look for companies that will grow value, not necessarily revenue, at above-average rates. On average, our typical investment is 30-35% cheaper than we think it ought to be and we think it’s increasing value at 15-20% per year on top of that.
Source: http://www.valueinvestorinsight.com/