Re: Buffetology
Let me guess...
Buy low, hold long term, sell high?
Actually you're you're right on one out of three, but Meatloaf has defined the acceptable level as two out of three so you go to the back of the class I'm afraid.
It's not buy low, it's buy good for a fair price. It involves picking a company you want to own and then determining a fair value for the share. If you can get it for less than the value you pick then great, but if you only get it for a fair price, or even slightly above, that's better than buying a bad company at a bargain basement price.
Benjamin Graham would have subscribed to the january sales philosophy. "I don't really need this company, but at this price it'd be a sin not to buy it".
Hold long yes definitely. If it's a good company there's no reason to sell it.
Sell high! Actually no, don't sell at all would appear to be the advise from Buffetology. As soon as you sell you give up a chunk to the tax man, and are you really going to be able to make the money you take out grow any faster than the people running the company that you had shares in?
Anyhow the long term hold, buy at fair price stuff is all pretty obvious. The bit of Buffetology I liked was the actual maths, the calculations, the case studies. It's not rocket science, but a bad book can make it feel like it is.
-Rd