How It works
To assess the attractiveness of an investment, it is important to calculate the intrinsic value of a company. This value is then compared to the current market price to determine the potential rate of return. An investment is considered if the expected rate of return exceeds 15%.
When deciding whether to sell an investment, it is crucial to evaluate the fundamentals of the company. If there is a deterioration in these fundamentals, it may be a sign to consider selling. However, minor setbacks caused by external factors should be carefully evaluated before making a decision.
Seek out companies that currently dominate their industry or show potential for future dominance. Patience is key, as waiting for an acceptable price that yields an adequate return is important before investing in these promising companies.
Build a diversified portfolio consisting of 20 to 30 carefully selected companies. This approach helps manage risk and promote potential returns. Regularly monitor the portfolio and stay informed about new information related to the invested companies, their industries, and the broader economic landscape. Adjustments to the portfolio should be made based on changes in the market environment to maintain alignment with the investment strategy.