“Give me 6 hours to chop down a tree and I will spend the first 4 hours sharpening the axe.” – Abraham Lincoln
Of course, one should never buy a stock without making necessary preparations.
The first step would be to draw as much information about the company as possible. If not you will find yourself popping a truckload of sleeping pills.
A stock-picker with scant regard for economic forecasts
And if you feel that a 3-7 (and above) year horizon isn’t your kind of thing and are looking for something shorter, here are some wise words by Wong Kok Hoi from APS Asset Management – ” Act when you do not have complete information. This sounds rather counter intuitive but it is what most successful investors do. More often that not it will be too late to act when you have gotten all the information that you need to make a decision. I am not suggesting that you make decisions before doing your research. There is a world of difference between knowing just enough to make a decision and not knowing enough before making a decision”
Sounds kind of like poker.
Picking their way through
Had the privilege of having a quick chat with the fund managers from Lumiere Capital. That hour or so of coffee with them probably formed the inspiration behind my investment philosophy. Here’s an article featuring the both of them on Pulses magazine. A must read for all budding value investors.