Principles

These are our 10 investing principles. They are our guiding philosophy of how we look at the market so that we can meet our investment goals. This is not financial advice.

Stocks Are Ownership In A Business

Stocks are not just flashing numbers on a screen that go up and down. They are minority interests in a business. We are business owners, not traders.

Mr. Market Is Your Friend

Take advantage of the market's mood swings. Capitalize on Mr. Market's mistakes when they do come, and they will come with patience. The market is there to serve you, not instruct you.

Bet Big

Wonderful opportunities don't come around too often. So, when it rains gold make sure you hold out a bucket and not a thimble.

Buy Undervalued Businesses

Only buy when the business is well undervalued and has a margin of safety in the purchase price. And keep buying as long as it's still undervalued. And don't sell unless it's egregiously overvalued.

Strategy of diversified investment. Investor managing portfolio. Pie chart and candlestic

Spread Your Bets

Don't put all your eggs in one basket. Spread your bets with 5-10 positions.

Hold Some Cash

Keep 5-15% cash for those times when it will rain gold. The cash cushion provides cover for large market declines, and we stay the path by buying stocks when they are cheap.

Bonds Are Not Your Friend

Trading bonds is not the answer. Predicting interest rates is not the answer. Inflation is built into the monetary system we have today. Don't get caught up in macro noise. Keep your eye on the prize and your feet on the long term path.

Invest In What You Know

It's a lot harder to get scared out of a good stock or FOMO into one when you know the company behind the stock.

Pay Attention To Earnings

Don't get caught up watching the scoreboard. The game is won on the field. And the field is Earning Power. Focus on earnings and the stock price will take care of itself.

Rub Your Nose In It

When you make a mistake (not if, when), learn from it. Learn from missed opportunities, learn from your own actions and psychological tendencies and learn what works for you, and then do it.