Get started with value investing now
Value investing is a practice. Value investing is spending an absurd, blissful amount of time diving into a company, sector and industry and really understanding the business, the management, and the way they allocate the company’s capital to grow the company in the long term and if the company is a cash compounding machine (as Mohnish Pabrai aims for). You want to find a wonderful company, a company that is within your circle of competence and in sync with your personal values. Circle of competence means that it’s within an industry or sector you know – for example if you’re in the building industry you might know and prefer to use certain materials, if you’re a nurse or doctor, there are treatments that you know really works and if you work with marketing, there might be communications bureaus that you believe is going to crush it in the future. Study the companies that you know and value – maybe one of them turns out to be a winner on all the parameters described in the first p...