Investment Strategy Check-In

Who Am I Aligned With?

I recently reviewed my investment strategy and was intrigued to find that it shares many similarities with the approaches of some renowned investors. Here are the top three investors whose philosophies closely align with mine:

Warren Buffett: Known for his value investing approach, Buffett emphasizes investing in companies with strong cash positions and stable earnings. My strategy focuses on net cash and seeks undervalued companies with consistent revenue growth, reflecting his principles.

Seth Klarman: As a value investor and author of "Margin of Safety," Klarman advocates for a disciplined investment approach that prioritizes risk management and cash flow. Like Klarman, I emphasize cash accumulation and a cautious stance toward speculative investments.

Joel Greenblatt: Greenblatt is famous for his "Magic Formula" investing strategy, which focuses on finding undervalued companies with high returns on capital. My emphasis on low P/E ratios and cash-adjusted valuations mirrors his methodology of seeking quality companies at attractive prices. Key Similarities: 1. Focus on Cash: All three investors prioritize companies with strong cash positions. 2. Valuation Metrics: We share a common interest in low valuation metrics (e.g., P/E ratios). 3. Long-Term Investment Horizon: Each of us believes in holding quality investments for the long term.