George P. Schwartz, CFA is the Chairman and CEO of Schwartz Investment Counsel, Inc. With over 40 years of investment experience, he maintains these time-tested guidelines in his investment decisions, which might benefit other investors.
ERR ON THE SIDE OF CONSERVATISM
Don’t let hope or optimism color your reading of the facts. If anything, understate your assessments.
KNOW THE FIELD IN WHICH YOU WISH TO INVEST
Concentrate on businesses you know well, or as Warren Buffett calls it, operate within your sphere of competency.
BE A CONTRARIAN
You can’t always know when is the perfect time to buy, but if you are minimally aware of trends, you can make reasonable projections. It’s like the old saying about buying straw hats in January, when they’re cheap, in anticipation of making a profit selling them when demand is up in July.
Value investing is like farming. You cultivate, you sow, you water, you wait. It takes time before the crop comes in.
CHECK OUT YOUR OWN BACKYARD
Any number of investment opportunities can present themselves right in your own area. To quote the famous sermon, sometimes there are “acres of diamonds in your own backyard.”
Past performance does not guarantee future results.