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115 Profitable Investing Ideas

115 Profitable Investing Ideas

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Published by gspeiche6784

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Categories:Types, Business/Law
Published by: gspeiche6784 on Jan 31, 2012
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Two and One-Half Years of Investing Nuggets from GregSpeicher.com
115 ProfitableInvesting Ideas
Greg Speicher 
Copyright © 2012 –
115 Profitable Investing Ideas
is available atGregSpeicher.com 
"Know what you own, and know why you own it." 
Peter Lynch
The following ideas are culled from the last two and one-half years of my investing blogs atGregSpeicher.com. These ideas have helped me to become a better investor, and I believe theywill help you too. Read them, study them, and let them inform your investment philosophy andprocess. And please share them with others who may benefit from them.1. Search broadly and continually for new investment ideas. To a large extent, it’s anumbers game.2.
Act like an owner.
Owners think differently – more seriously.
They naturally focus on theright issues
: cash flows, competitors, keeping and delighting customers.3. Only buy what you understand. This should be completely obvious but people ignore it allthe time. They trick themselves into thinking they will miss opportunities if they restrictthemselves. IT’S HARD ENOUGH TO VALUE WHAT YOU DO UNDERSTAND.
Wait until it is completely obvious that the odds are in your favor.
5. Buy good businesses. Nobody has a gun to your head. Why not invest your money in thebest companies? You’ll take less risk and get better results,
as long as you don’t overpay.
6. Invest in companies with great management. Management controls capital allocation.Invest with people who have
that they have your interests at heart and that theyknow how to make money.
(Look at what management has done, not what they say.)
 Also, don’t compromise on integrity.
7. Buy the cheapest business available. Re-read Chapter 8 in the
Intelligent Investor 
. Thereis no reason to overpay when Mr. Market is there to serve you.8. Focus on your best ideas.
Invert this one, and see if it makes any sense.
Practice mega-patience.
This is the one quality virtually every investor needs more of.Figure out how to be more patient. Find whatever hacks you need to modify your behavior. This is a big one!10. Avoid stupid mistakes. Woody Allen said that ninety percent of life is just showing up.
 Abig part of investment success is avoiding stupid capital-destroying mistakes.
11. Be a learning machine. In the investing game, you are either keeping up with your reading and learning or falling behind. (Internet surfing doesn’t count.)12. Study the great investors
– like you were studying for a major exam or certification.13. Get enthusiastic about what you are doing.
Nobody ever accomplished anything great without passion.
14. Buy when others are fearful (and your own gut is beginning to churn). You want to buyfrom people who are selling for uneconomic reasons. To do this, you need to 1) master your emotions and 2) know how to value a few good businesses.
The number is not all that important as long as you can reasonably value the companies you choose to buy.
15. Watch out for relative valuations. Just because something is cheaper than its peers, itdoes not mean that it’s cheap based on intrinsic value.16.
Write down why you are buying a stock before you buy it!
Buffett has been
 pounding the table
on this one for years. Too few actually do it.17. Think correctly about intrinsic value. It is not a precise figure. At best, it’s
a range
of values. Thinking otherwise is delusional.18. If there is a real risk that you could lose your capital, don’t invest.
Repeat: If there is a real risk that you could lose your capital, don’t invest.
19. Look for situations where intrinsic value is increasing. That way, if you need to wait, your investment is growing in value.
(You’re being paid to wait!)
20. Look for stocks selling at five times normalized earnings that are growing five to sevenpercent per year.21. If you’re holding a position in a stock that is undervalued, sell it and replace it,
if you canfind another holding that is materially more undervalued.
(Key word: “materially”. This isnot an exact science.). Of course, don’t forget to consider the impact of taxes.22. Look for catalysts when you invest. They improve your rate of return by closing the valuegap in less time.23. When you buy a stock, try to figure out why it is selling at a bargain.
If you can’t figure itout, you may be the sucker at the poker table.
Waiting for the general market to be down 20% is not a bad practice, if you want toavoid investing when equities are overheated.
Buffett has said over and over thatthis is the way he spends his time. (Isn’t that enough?) The best advice Jim Rogers ever received was to read the annual report when considering an investment (advice that heput into practice and made a fortune) and that, if he did so,
he would be ahead of 98% of Wall Street.
(This may be the lowest cost, highest payoff idea in the entire list.)26.
Read the footnotes.
This could have been 25b. Rogers was told that if he read thefootnotes
he would be ahead of 100% of people on Wall Street 
.27. Invest in companies that dominate their industries.28. Focus on where your investments will be in three to five years.
This is the sweet spot that Wall Street ignores.
IT REQUIRES THE RIGHT TEMPERMENT AND CONVICTION TOHOLD ON TIGHT. MANY CANNOT DO THIS. Shorter periods of time are unpredictable,because in the short term psychology often trumps fundamentals.29. Don’t try to make macro-forecasts. Focus on picking individual stocks that have a highprobability of being successful.

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