5 step approach for great stock picking
Crisp summary of the Warren Buffet way would act as an important guide to start with.
- Approach stock purchases as buying a business rather than just a stock purchase in the portfolio.
- Evaluate the true worth of the business considering the future earning potential
- The margin of safety is the real risk containment measure and not stop loss
- Turnaround seldom turns and therefore Invest in great businesses that are generating free cash flows
- Invest for the long term to generate inflation-adjusted superior returns.
