The Business of Value Investing.pdf

46 The Business of Value Investing

it, and very few investors reap the huge rewards that arise from bet-

ting big against the crowd.

Emphasize the Process, Not the Outcome

If you carefully observe the best investing minds today, you can see

this mental model applied over and over. The best investors are

much more concerned with developing a sound, effective process

and letting the outcome follow as a result. Each investor ’ s approach

is different, but the mental process is generally the same from

beginning to end. Great investors:

• Ignore 90 percent of the market information that is noise.


• Invest independently without any regard for the general
  consensus.

• Understand that time works to the benefit of the investor.

Key Takeaways

• The best value investors always work within a fundamental framework
  that emphasizes the process fi rst and the outcome second.


• Developing a sound investment philosophy is the basic foundational
  element for all investment activity.


• The best value investors all commit to an investment philosophy that
  emphasizes capital preservation, patience, discipline, and avoiding crowd
  psychology.

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