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concentrations of ethnic groups in certain professions is because role models play a huge role in how humans pick their vocations. If someone looks like me, has had a similar upbringing, belongs to the same religious order, has attended a similar school, and is making a good living, it naturally has a huge impact when I’m trying to decide my calling in life. Tall inner-city African-American kids routinely see tall African-American males playing for the NBA and leading very enviable lives. They are also aware that the childhood of these NBA stars, in many cases, is pretty similar to their own
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We see change as the enemy of investments ... so we look for the absence of change. We don’t like to lose money. Capitalism is pretty brutal. We look for mundane products that everyone needs.
“Our life is frittered away by detail ... simplify, simplify.”
The wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.3
American Express, ADP, Paychex, Procter & Gamble, and Costco are all examples of low-uncertainty businesses. Their stock prices rarely get to bargain basement prices. When uncertainty does cloud their future, as it did for American Express in the 1960s, their stock price will dutifully tank.
enjoyed reading Swensen’s most recent book, Unconventional Success: A Fundamental Approach to Personal Investment.
The combination of Magic Formula, VIC, Value Line, OID, Value Investor Insight, Portfolio Reports, Super Investor Insight, Guru Focus, and the various business publications are all likely to drop a few fifty-cent dollars right into your lap.
Do not make the fatal mistake of looking at five businesses at once. Learn all you can about the business that jumps out for whatever reason and fixate solely on it. Once you’re at the finish line with your analysis, only then look at the broader circle of competence.
