Showing posts with label in-law principle. Show all posts
Showing posts with label in-law principle. Show all posts

Saturday 17 January 2009

IN-LAW PRINCIPLE

IN-LAW PRINCIPLE

The headline-grabbing accounting scandals of the early 2000s underscore the age-old importance of trust in investing.

Value investors invest only in the stock of companies known to be run by faithful stewards of investor capital.

They seek proven track records of good judgment and fair treatment.

History is not always reliable, but any hints of malfeasance in a manager’s record are enough to disqualify his employer.

Value investors imagine managers of companies they are considering as prospective in-laws.

If they would not want their child to marry a company’s top manager, they don’t invest money in that company.


Also read: 10 TENETS OF VALUE INVESTING

  1. MR. MARKET PRINCIPLE
  2. BUSINESS ANALYST PRINCIPLE
  3. REASONABLE PRICE PRINCIPLE
  4. PATSY PRINCIPLE
  5. CIRCLE OF COMPETENCE PRINCIPLE ****
  6. MOAT PRINCIPLE
  7. MARGIN OF SAFETY PRINCIPLE ****
  8. IN-LAW PRINCIPLE
  9. ELITISM PRINCIPLE
  10. OWNER PRINCIPLE