15 Tips about Business

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One benefit of being a global investor is in learning how a particular business should be valued – which is often properly done in the U.S. – and...
We rarely use discounted cash flow to calculate target prices. We just don't think it's worth the effort except for very stable businesses such as...
It’s when we’re truly negatively surprised that we typically exit a position. If we’re surprised, that usually means management is also and that...
I have always had an affinity for companies that actually make things. We favor companies with transparent businesses that we can understand fairly...
Tags: sectors, business
We focus first on good businesses, with high returns on capital, barriers to entry and significant free cash flow generation over a cycle. If you're...
Tags: value, business
We spend a lot of time trying to figure out how competitors would attack the business of the company we’re interested in. The harder that is, the...
How would you judge an investing strategy that had the following fundamental economic characteristics: 1) Limited potential returns, but unlimited...
We like looking at multi-segment businesses where it’s a bit more complicated to analyze all the parts and there’s not an obvious answer to the...
Tags: value, business, worth
One red flag is when management sits down with us and right off asks, “What do you think is wrong with our share price?” Any implicit or explicit...
The power of self-interest in business and economics is, of course, well established. “It is not from the benevolence of the butcher, the brewer, or...
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