The Business of Value Investing.pdf

146 The Business of Value Investing

Key Takeaways

• In investing, and in life, having the discipline to say no can mean the
  difference between success and failure.


• Price is what you pay, and value is what you get. The price paid for an
  investment will determine the value gained.


• Being disciplined usually means avoiding what’s popular on Wall
  Street.


• Be prepared to look stupid in the short run when you are saying no
  while everyone else is saying yes.


• Having discipline cuts both ways: Don’t split hairs trying to bottom
  fi sh a stock price. Focus on pricing the business, not timing the stock. An
  undervalued business with a wide margin of safety will be a good investment
  whether it’s bought at a share price of $20 or $17.


• In the short run, market prices refl ect investor sentiment; in the long
  run, market prices weigh on the fundamentals of a business.


• Invest for capital preservation fi rst and capital appreciation second.


• Maintaining a disciplined approach and not being emotional are not
  easy in investing, but the qualifi cations needed to do so are simple.

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