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Investing Checklists - Bill Ackman's 8 Principles for Successful Investing
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In this video I take a look at Bill Ackman’s 8 Principles for successful investing.
Bill Ackman’s 8 Principles
1. Simple and predictable businesses.
2. Free cash flow generative.
3. Dominant market position.
4. Large barriers to entry.
5. High return on capital.
6. Limited exposure to non-controllable extrinsic risks.
7. Strong balance sheet where outside capital is not necessary.
8. Excellent management and good governance.
Bill Ackman also mentioned that whenever he has veered away from these principles he has lost money.
These principles are very similar to those outlined by Charlie Munger in a BBC interview by in 2009.
1. We have to deal with things that we’re capable of understanding.
2. Once we’re over that filter we need to have a business with some characteristics that give us a durable competitive advantage.
3. Then, of course, we would vastly prefer management in place with a lot of integrity and talent.
4. Finally, no matter how wonderful it is, it’s not worth an infinite price. We have to have a price that makes sense and gives a margin of safety considering the normal vicissitudes of life.
The Invested Podcast from Phil and Danielle Town has been covering these principles in detail since 2015!
Enjoy the video!
Useful Links from the Video
Invested Podcast: Bill Ackman Checklist – Part 1
Invested Podcast: Bill Ackman Checklist – Part 2
Follow me on Instagram
Let’s connect on Twitter
Playlists
Individual Stock Analysis Playlist
Financial Statements Playlist
Valuation Methods Playlist
Investing Terms Playlist
Passive Investing Playlist
Personal Finance Playlist
Great Investor Quotes Playlist
#financialinterest #principlesofinvesting #billackman
Disclaimer: Dan Powell is not a financial advisor. All content is for education and entertainment only. Always seek assistance from a qualified professional before making any investment decisions.
Bill Ackman’s 8 Principles
1. Simple and predictable businesses.
2. Free cash flow generative.
3. Dominant market position.
4. Large barriers to entry.
5. High return on capital.
6. Limited exposure to non-controllable extrinsic risks.
7. Strong balance sheet where outside capital is not necessary.
8. Excellent management and good governance.
Bill Ackman also mentioned that whenever he has veered away from these principles he has lost money.
These principles are very similar to those outlined by Charlie Munger in a BBC interview by in 2009.
1. We have to deal with things that we’re capable of understanding.
2. Once we’re over that filter we need to have a business with some characteristics that give us a durable competitive advantage.
3. Then, of course, we would vastly prefer management in place with a lot of integrity and talent.
4. Finally, no matter how wonderful it is, it’s not worth an infinite price. We have to have a price that makes sense and gives a margin of safety considering the normal vicissitudes of life.
The Invested Podcast from Phil and Danielle Town has been covering these principles in detail since 2015!
Enjoy the video!
Useful Links from the Video
Invested Podcast: Bill Ackman Checklist – Part 1
Invested Podcast: Bill Ackman Checklist – Part 2
Follow me on Instagram
Let’s connect on Twitter
Playlists
Individual Stock Analysis Playlist
Financial Statements Playlist
Valuation Methods Playlist
Investing Terms Playlist
Passive Investing Playlist
Personal Finance Playlist
Great Investor Quotes Playlist
#financialinterest #principlesofinvesting #billackman
Disclaimer: Dan Powell is not a financial advisor. All content is for education and entertainment only. Always seek assistance from a qualified professional before making any investment decisions.
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