Adam M. Grossman’s article as published by Jonathan Clements in his blog humbledollar.com is a short but extremely insightful article about an interesting perspective on successful investing.
A recent study of Buffett's success found it is primarily attributable to low priced and high quality companies. Quality is defined as above-average profitability, stability of profits, above-average growth and below-average debt.
It is surprising how simple metrics can achieve success in a world of Bloomberg terminals and sell side analysts. Bloombergs provide a tsunami of data points, while sell side analysts provide even the smallest details regarding a company.
My takeaway is to always use the KISS (keep it simple stupid) principal.
Always remember what Henry David Thoreau said:
“Simplicity, simplicity, simplicity! I say, let your affairs be as two or three, and not a hundred or a thousand; instead of a million count half a dozen, and keep your accounts on your thumb nail.”
Be safe, be smart, be prepared, be well read and be successful!
