100 to 1 in the stock market

Buy great companies with lots of growth potential at reasonable prices (don't worry too much about getting the lowest price) and hold as long as they stay great and not too big.

Earning power is more important than actual earnings.

Picking

• Criteria:
  • Small,
  • Relatively unknown,
  • Unique product with benefits and large market,
  • Strong, progressive, research-minded management.
• Stocks that professionals like but are not sure of.
• Odds are in your favor.
• Most value is created by solving important problems that many people want solved.

Timing

• Don't sell as long as the earnings are doing well. Every sale is a confession of error.
• For a long term investor it's much more important to pick right companies to invest in than to time the market.

Analysis

• Fundamental vs. technical analysis:
  • Fundamental = what ought to be happening in the market.
  • Technical = what is actually happening.
  • Both are important to know.