Treasure in abundance
Wow! Stocks are getting cheaper and cheaper. I thought i will never see this in my lifetime but yet i am witnessing a situation when treasures are in abundance, yet few have the courage to pick it,for fear of picking a pile of shit.
To prevent your treasure digging from turning awry, focus on the balance sheet,the lesser the debt the better. Also, look for competitive moat and a honest,shareholder oriented management. Don’t forget the cash flow, the more the merrier, but be careful of too much capex.
If you don’t want to bother with doing research, simply buy the index. Even if it takes 10 years for share index to double, you would have earned at least 7% pa,not forgetting you are getting dividends for 10 years while waiting for value and sanity to return.
To quote Buffett: “I feel like an oversexed man in a harem. This is the time to start investing.”
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