Tuesday, March 28, 2006

Investing Maxims To Live By

Fairholme Funds homepage comes with a set of A-Z maxims that underlies their focused approach to value investing.

Here is a pick of those I found rather interesting:

Cash counts (it's the only thing you can spend)
Don't guess (know)
Focus sharpens returns (own your best ideas)
Happy is sad (make your money during difficult times)
Keep it simple (focus on what is important)
Ignore the crowd (don't be a lemming)
Owners know best
Price matters (buy with a margin of safety)
Talking and Walking (we really eat our own cooking)
Value is all that matters
Zeroes don't grow (don't lose)

Besides the usual value principles, the other investing maxims are nothing more than good old common sense. But then again isn't value investing all about good common sense? In a world of correlations, betas & alphas and standard deviations, it is refreshing to hear an investment manager talk in a language we can all appreciate.

Not A Lemming


Blogger douglas mcintyre said...

Nicely stated

Doug McIntyre


6:27 PM  

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