The 6 Investment Rules of Terry Smith, the British Buffett
Terry Smith's 6 Investment Rules
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1. Use disqualification criteria
Eliminate the worst-case scenario and reduce the chances of making big mistakes
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2. Utilize the advantages of individual investors
-Long term games
-Buying unpopular stock
-Choose unpopular industries
-Countercyclical investment
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3. Create an observation list
-Frequently updated
-Set appropriate target prices for each company
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4. Search for companies with high free cash flow returns
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5. Understand the implied meaning behind the words
-The more marketing slogans and clich é s there are, the more we should be skeptical
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6. Three investment principles
-Buy a good company
-Don't pay too much fee
-Do nothing