Good investor and Making good investment
Sohail Ur Rehman
Deputy CEO | Internal Audit & Risk Management Leader | 18+ Years in GRC, ERM & Operational Risk | FCCA, CIA, CISA | Strategic Portfolio Risk & Compliance Expert
Good investor and Making good investment
The question that how to become a good investor or what makes a good investment will remain a never-ending debate.
The founder of Akre Capital Management, a US-based investment firm with $11.3 billion AUM has outlined a three-legged stool philosophy for becoming a good investor or making a good investment. Every potential investor has to dedicate a considerable amount of time to reading and understanding the investment.
The three-legged include;-
1.??????The Quality of Business
a.??????Invest in value proposition rather than speculation
b.??????Invest in sustainable business model
c.???????Ignore the media noise and focus on fundamentals
d.??????Identify attractive valuation and consolidate
?2.??????People who run the Business,
The people should be skilled and dedicated.
?3.??????Reinvestment (Compounding Impact),
Reinvestment creates significant value for long-term investors through reinvestment/compounding. ?
The recommended material includes;
Warren buffet talked about the characteristics of a great business and what makes a great investor.
The benefit of compounding and compounding return.?
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