How to Think Like Benjamin Graham and Invest Like Warren Buffett

102 ShowMetheMoney compoun drate of return of 9% doubles approximately every 8 years, at age 57 she’ dnee dto have $500,000; at ...

AppleTreesandExperience 103 winners neglect how much they are losing to tax payments both outright an din terms of the time valu ...

104 ShowMetheMoney but not their prediction. As Buffett says, “We do not have, never have had, and never will have an opinion ab ...

105 Chapter7. Your Circle of Competence I nvestors avoi dstocks outsi de their circle of competence; those who buy stocks outsid ...

106 ShowMetheMoney standing of it. Another useful source to consult is the chairman’s or CEO’s letter, as much for what it says ...

YourCircleofCompetence 107 Coca-Cola in Atlanta, Kimberly-Clark in Dallas, an dJohnson Con- trols in Milwaukee. How do the compa ...

108 ShowMetheMoney guishing their products in the consumer’s eye as having distinctive traits that make them worth buying even a ...

YourCircleofCompetence 109 uation like? Its employee relations? Does it operate in regions subject to ordinary or extraordinary ...

110 ShowMetheMoney constantly stretch her knowledge of that industry and in doing so redefine her investment circle of competenc ...

YourCircleofCompetence 111 as war, trade disputes, oil price spikes, and earthquakes. This calls for a delicate balance. Graham ...

112 ShowMetheMoney how changes that affect industries and companies follow certain pretty well defined paths. Business change is ...

YourCircleofCompetence 113 masses may generate some short-term profit (hula hoops, yo-yos), but the typical pattern is that thos ...

114 ShowMetheMoney Coca-Cola’s late CEO, Roberto Goizueta, who is discussed further in the final chapter of this book). Disney’s ...

YourCircleofCompetence 115 CEO Jack Welch (discussed in Chapter 14), you will gain a good sense of the company and how it operat ...

116 ShowMetheMoney stantly an drapi dly evolves. Amazon.com starte das a bookseller but quickly expanded into a wide range of pr ...

YourCircleofCompetence 117 quire dfor a particular decision varies with the probable payoff from being right compare dto the pro ...

118 ShowMetheMoney Confirmation and resistance: skewing your interpretation of new information to support earlier beliefs an db ...

119 Chapter8. Recognizing Success W hat makes an investment attractive? A price substantially lower than value. Estimating value ...

120 ShowMetheMoney dated or corrected, may have embedded errors that arise in the trans- mission process, an dmay be the pro duc ...

RecognizingSuccess 121 short term obligations such as commercial paper that is later refi- nance dwith long-term obligations suc ...