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Our guiding principles center around two important criteria: How to value a
business and how to think about the market. Valuing a business
is more science than art. We believe, the lower the cost of
a business, the lower the stock price, and the better off
we are investing in it. We evaluate a company’s value
utilizing book value, P/E ratios and net working capital figures.
We prefer a great business at good price to a lousy business
at a great price.
After we have identified a good investment, we attempt to
evaluate
entry points when sentiment is favorable. This involves more
art
than science. We use various technical indicators and sentiment
gauges
as guides to enter an investment.
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