James Montier’s The Seven Immutable Laws of Investing
September 19, 2011 1 Comment
James Montier expounds The Seven Immutable Laws of Investing to help investors avoid some of the worst mistakes, which, when made, tend to lead them down the path of the permanent impairment of capital.They are as follows:
1. Always Insist on a Margin of Safety
Valuation is the closest thing to the law of gravity in finance .It is the primary determinant of long-term returns. The objective of investment (in general) is not to buy at fair value, but to purchase with a margin of safety.This reflects that any estimate of fair value is just that: an estimate, not a precise figure, so the margin of safety provides a much-needed cushion against errors and misfortunes. When investors violate this law by investing with no margin of safety, they risk the prospect of the permanent impairment of capital. Read more of this post
Here is a poem I came across in Napoleon Hill’s ‘Think and Grow Rich’.I think it is very good.I wish that I had somehow come across this poem years ago;sometime in middle school when we had to memorize so many poems.It would have saved me so many years and so much vain effort chasing perfection.I would have then concentrated on winning instead of trying to be most worthy of winning.BTW a bit of googling brought up the poet’s name Walter D. Wintle. 
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Here is an old interview of Narayana Murthy.I made it a point to read it today to try to understand the man a little better .
wealthymatters 