Ngan Le’s Reviews > The Intelligent Investor > Status Update

Share holders will not benefit from an expansion move undertaken with their money by a business showing mediocre results and continuing old management

buy a stock: its price is as cheap as possible while its net revenue is as high as possible

There is no such thing as a good stock. There are only good stock prices, which come and go.

margin of safety: stock is trading at 60% or less of the value of the company

Diversification maximizes your chances to be right and minimizes your odds to be wrong.

Simple Stock choosing for defensive investor: buy every stock in the DowJones Industrial average at a low price.

Victory belongs to the doers, not to the talkers

About management:
Companies' leader should say what they will do and do what they said. They should admit their mistakes, take their responsibilities and not blame any reason.
Stay away from companies that pay their managers too high salary or companies that have managers keep selling their shares or managers always talking about stocks on public instead of managing their companies

Good companies:
Brand identity
Monopoly
Economies of scale
Unique asset
Resistance to substitution like ultilities companies: Food, Electricity..
Net earning grows smoothly, not too fast and then over heat and flame out
Invest in R&D but not too much

signal of bad company: Only has one customer