The Starry-Eyed Investor
A value investing strategy that uses existing, independent, and trustworthy research in a simple, repeatable, automated process.
Principles
- Buy quality on sale.
- Don’t think too much.
- Buy regularly.
- Sell occasionally.
- Automate everything.
The 3 Ms: a hierarchy of value investor needs
- Margin of safety: the foundation. Buy quality companies at good prices to leave a lot of room for error.
- Management: the jockey. You can buy at a good price, but you need people who know what they’re doing to unlock value.
- Moat: the edge. All competitive advantages fade over time, but some last longer than others.
Who is this for?
This system is designed for me, based on my knowledge, experience, and values. You might be interested or curious if you…
- Know who Charlie Munger is, but also know you aren’t Charlie Munger (or his better known partner).
- Know what discounted cash flows and operating earnings are, but aren’t interested in calculating them on a regular basis.
- Love learning about businesses and reading concise, well-articulated analyses (or even books) but not 10-K filings.
- Understand the concepts of value investing and mean reversion, but don’t want to turn your portfolio over to a black box algorithm.