Questions to ask before buying
First, do I understand it? Second, is it good? And third, is it inexpensive?
Value investing gives a better return over time than other strategies.
Look for ugly annual letters
“A good rule of thumb is the prettier the page, the less useful it is. Zoom right past the bar charts, CEO letters, and world maps. The meat of an annual report often begins with the consolidated financial statements.”
What you need to look at
Products 2. Customers 3. Industry 4. Form 5. Geography 6. Status
History is what you look at
“The first question—has it been historically good—is simple to answer. It’s simple to answer because we have financial statements that report on how well the business did.”