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"We don't buy cheap stocks. We look for quality businesses we want to own and wait until they get cheap" says Vulcan Value Partners manager C.T. Fitzpatrick. "When the conditions are right, you can catch some really big, beautiful fish." Later in the same interview, Fitzpatrick added: "There are companies that I've personally followed for my entire career, waiting for the chance to buy."
"Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).
Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whole value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables."
Peter Lynch said it in a succinct and colorful way: "Never invest in any idea you can't illustrate with a crayon".
3 Surprising Habits of Smart Investors
"We don't buy cheap stocks. We look for quality businesses we want to own and wait until they get cheap" says Vulcan Value Partners manager C.T. Fitzpatrick. "When the conditions are right, you can catch some really big, beautiful fish." Later in the same interview, Fitzpatrick added: "There are companies that I've personally followed for my entire career, waiting for the chance to buy."
"Our investments continue to be few in number and simple in concept: The truly big investment idea can usually be explained in a short paragraph. We like a business with enduring competitive advantages that is run by able and owner-oriented people. When these attributes exist, and when we can make purchases at sensible prices, it is hard to go wrong (a challenge we periodically manage to overcome).
Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whole value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables."
Peter Lynch said it in a succinct and colorful way: "Never invest in any idea you can't illustrate with a crayon".
