The 8-Step Beginner’s Guide to Value Investing Quotes

“This is why recessions destroy companies who are built solely on debt, whereas companies who maintain healthy cash reserves (like Berkshire Hathaway) can ride the wave through to the other side.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“An economic moat is some condition that gives a company a significant competitive advantage. It could be anything from size, to trademarks and patents, or a business process.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“Don’t buy businesses that are overexposed to a single economic factor.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“when reading a company’s annual or quarterly report, focus on figures such as the number of paying customers or average customer purchase value. Rather than relying on misleading numbers like “total users” or “monthly average users.” These are often used by unprofitable companies to make their prospects look more attractive than they are.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“Looking at the turnover and quality of managers in charge of sales and marketing is a good way to gauge how much the company values this part of the business.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“Looking at the turnover and quality of managers in charge of sales and marketing is a good way to gauge how much the company values this part of the business. One important element of this principle is knowing which numbers matter the most to a company’s bottom line. For example, many Software-as-a-Service businesses have a tremendous amount of free users (who cost the business money in server fees). Still, they have a difficult time converting these free users into paying customers. So when reading a company’s annual or quarterly report, focus on figures such as the number of paying customers or average customer purchase value. Rather than relying on misleading numbers like “total users” or “monthly average users.” These are often used by unprofitable companies to make their prospects look more attractive than they are. Another essential element of this principle is that a company’s income is not reliant on a single factor. For example, if a semiconductor manufacturer relies on a contract with Apple for 80% of its revenue, then Apple ending that contract would plunge the economics of that business into disarray. This is”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“The Management’s Discussion and Analysis (MD&A) section of the company’s financial reports provides a good read on how honest management is. Reading prior reports and looking at how management evaluated the business environment at the time is a good way to get a handle on how they tend to communicate and view conditions.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“Let us be clear; understanding a company or using a company’s products is not the only reason to invest in a company. It is crucial to make this distinction because many new investors use this as their entire analysis. But it is a great place to start your research.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“By combining the above principles, it is clear that the most intelligent investment decision you can make is to buy and hold stocks for as long as possible. Leave the constant jumping in and out to the traders and other speculators. Resist everything that can potentially cause you to exit early or trade too much in a single stock.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“While you cannot predict human emotion, you can make intelligent decisions about a company’s business prospects. You can evaluate their economic outlook and that of the business they’re operating in. This process removes emotion and market sentiment from the equation and is the only way to make money in the long-term reliably.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market

“I could calculate the motions of the heavenly bodies, but not the madness of the people.”
― Freeman Publications, The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent ... Even in a Bear Market