Develop a Search Strategy 81analyzing. I say this not because I don ’ t advocate copying Buffett
but to emphasize that in order to be an effective and successful
investor, you have to have discipline. You have to be disciplined
enough always to perform due diligence, even if you ’ re absolutely
confi dent that your efforts will confi rm someone else ’ s thesis. The
last thing you want to do is make mistakes that could have been
avoided easily with some basic research. As with any of the resources
mentioned, use VIC for its insights and recommendations, but do
your own work.Your Own Common Sense
One of the most underrated and underappreciated sources for
good investment ideas is your own common knowledge. Use your
own advantages or those of the people around you to discover new
investment ideas. Odds are almost 100 percent that you will be
looking at business where the most important factor — understand-
ing the business — is virtually guaranteed. In other words, using your
interest and lifestyle habits to fi nd those businesses that fi t within
your lifestyle guarantees that you will always be looking within your
circle of competence.
While I admire Warren Buffett a great deal and give him credit
for the great bulk of my investment philosophy, one area he and
I differ on is our dietary habits. While Buffett usually begins his
day with a Cherry Coke, I usually start my day off with a mango
smoothie or some other type of fresh - squeezed fruit juice. I enjoy
eating lots of fresh fruits, generally avoid soft drinks (herbal tea is
my choice for a pick - me - up, although I do enjoy a good root beer
or cola), avoid eating meat on a daily basis, and pay close attention
to food ingredients. As with my investment habits, if I can ’ t under-
stand what I ’ m eating, I do my best to avoid it.
So, it should come as no surprise that I am very fond of and
familiar with Whole Foods. Whole Foods is a phenomenal company.CH005.indd 81CH005.indd 81 9/2/09 11:08:06 AM9/2/09 11:08:06 AM