— at 42 minute mark, TBC —
Li Lu's investment checklist
- Is it cheap?
- Is it a good business?
- Are there good managers?
- What else is missing?
95% of market participants are not long-term investors. So think: if you are short-term oriented, which material information would you not care about? (broadly: anything that is unlikely to have a payoff in the next quarter).
Be the 5%.
If you are a real investor you don't care what the stock used to trade for.
Where to shop: new "lows" lists (e.g. from ValueLine)
Job is primarily as an investigative journalist.
Most people who have built businesses are big personalities and leave a trail of who they are.... Must dig it up. Spend as much time as you can in/around the communities of the managers and owners. Go to the stores, customers, buy the products, etc. See what is and isn't working.
Don't think, talk, or act in basis points.
If you are not a good analyst you will never be a good investor.