What the market is and how it works ?
1. Markets adjust bad news instantaneously, and adjust to good news gradually over period of time
2. Where you bot a stock is ir-relevant its all about where its going to go
3. Portfolio investment is very complex because wall.st made it so to get a portion of your money
Investments in 3 buckets
1. Money that will be safe no matter what
2. equities of world class companies with long term commitment to bucket
3. go for the gusto high risk - holdings 5-10% - just like going to las vegas
How To Learn
1. Disciplined strategy having a goal
2. You always have to pay the stupid tax to learn
3. Managements projections are wrong, they lie.
3. Stock market is a losers game - analyze downside before looking for upside
4. Speaking to mgmt is not best for negative they will always put their best foot forward
5. Financial statements needed to look for value of future earnings
6. Have the ability to sell stock when the value of stock based on Future Earnings has " peaked "
7. No guts no glory
Eleven More Tips
1. Attempt to predict market moves is a failure
2. Accurate economic forecast are unnecessary, interest rate and future cash flow is only information needed
3. Current news is not useful
4. Price is the most important aspect
5. Investment Mgr's making fewest errors are the best long-term performers ( +1 this many times over)
6. Are you buying excess cash flow at discount to value
8. Desire to be right every-time is a like a black light bulb
9. Search for value cannot be limited to value stocks
10. Strict sell discipline is utmost important
11. Last of all even best Mgr's go through periods of under perform, so again go and read # 7.