Outsmarting the Crowd
Outsmarting the Crowd

Outsmarting the Crowd

Investing is about picking the right principles, staying on the right path, and following the right philosophy to perpetually grow the capital. (Location 956)

A good rule of thumb is, if the net margin is over 3%-5% and the returns over 10%-15%, the company is doing something right. (Location 1933)

A good business is a business that has good returns (profits as a percentage of equity or assets, or invested capital, which is total debt and equity), good margins (profits as a percentage of sales), low capital needs (the money needed to maintain and grow the business). (Location 2015)