1. The ability to use common sense can frequently save lives.
2. In a heavily leveraged business, stability, not speed, must be the priority. Trying to go quickly ends quickly.
3. In the end, diversification is essentially a failure.
4. Businesses that don’t generate revenue will eventually drop its mask.
5. Overvaluation is poison, because purchasing at an overvalued price results in financial loss.
6. If possible, avoid dealing with heavily leveraged businesses!
7. Businesses with a concentrated market face greater competition.
8. A business that consistently takes on debt must be in need of capital.
9. If a business must take on debt to expand quickly, its future can be a complete chaos.
10. Businesses with relatively low gross margins typically lack much market competition.
11. A significant indicator of a robust guarantee is a consistently high net profit margin.
12. When a business is described as being simple to grasp, it refers to the fact that everyone can understand it, not only those who have studied it.
13. Management is not a god. They can’t do whatever they want to do, and most of them are ass in the lion’s skin.
14. In business management, a person’s persona is not as significant as the system.
15. People’s time and energy are limited, and they will have a hard time understanding more than three businesses. Those who say that they know everything must be deceivers.
16. The gold content of an investment can be best tested during a time of crisis.
17. Free cash flow is the foundation of every business valuation.
18. Under the overall tendency, a business cannot function without the entire industry. It also cannot exist independently of the nation.
19. A company that keeps expanding does not exist. If there is a business that keeps growing, there must be a big pit waiting for it in the future.
20. Half the battle is won by picking a business with inherent fortune. But you will only get half the result with twice the effort if you choose a business with intense competition in a market.
21. When considering a purchase, undervaluation is usually a top priority.
22. Purchasing a stock at an excessive price is a surefire strategy to reduce your wealth.
23. The only way to determine whether a firm is indeed profitable is to look at its consistent net dividends.
24. One of the telltale signals that a business has peaked in its cycle is a decrease in revenue growth.
25. Without a competitive advantage, it is impossible to value a corporation.
26. Avoid applying leverage.
27. Concentration of free cash flow to the leaders of the industry.
28. So long as the businesses in which you invest are making a profit, other investors will undoubtedly join you.
29. A shift in supply and demand is what drives the cycle, which has nothing to do with the Black Swan. That is only a symptom.
30. When it comes to investing, slowness is speediness. More haste, less speed.