Sunday, October 31, 2010

Been reading alot these days.

I am concurrently reading a book by Robert HagStrom "The Warren Buffett way" as well as a book co-written by Donald Trump and Robert Kiyosaki "Why we want you to be rich".

I read today, from the Warren Buffett way, something that I may take away and keep it for a long time (or at least I ought to). Hahas.

How do we see if a business is worth our time, worth our investment:
(extracted from the book)

Business:
1) Is the business simple and understandable?
2) Does the business have a consistent operating history?
3) Does the business have favorable long-term prospects?

Management:
4) Is management rational?
5) Is management candid with its shareholders?
6) Does management resist the institutional imperative?

Financial Standings:
7) What is the return on equity?
8) What are the company's "owner earnings"?
9) What are the profit margins?
10) Has the company created at least one dollar of market value for every dollar retained?

Value:
11) What is the value of the company?
12) Can it be purchased at a significant discount to its value?

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Ok :) I guess there isn't much readers since the blog was sooooo dead! Hahas.

awaitin` destiny silently__] *at* 6:40 PM