Famous Business Strategies - On businesses...
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* simple and understandable
* consistent operating history
* favorable long-term prospects
* rationality in treatment of retained earnings and investment of company profits
* disclosure of all aspects of company performances
* capacity of thinking independently of other managers' way of thinking.
* look for return on equity, not earnings per share
* analysis of free cash flow growth
* unique niche companies with high profit margins
* look for companies with at least one dollar of market value for every dollar retained
On stock valuation
* reasonable price for the company
* stock valuation analysis followed by analysis of a possible significant discount, case in which it will be purchased.
Success depends on the investor's dedication to learn and follow the principles.
He gives his ten rules for success in the book "Made in America, My Story":
1. commitment to business
2. profit sharing with partners
3. partners' motivation, competition encouragement
4. total communication with partners, trigerring their commitment
5. giving appreciation to what your partners do for the business
6. keeping spirits up in celebrating success but also in treating failures with a touch of humor
7. listening to everyone in the company, encouraging their talking
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