Thursday, May 25, 2006

Sarbit Asset Management

Larry Sarbit is one of Canada's best known and highly respected money managers. There are plenty of things to learn from him.

According to Larry Sarbit, there are 4 pillars of successful business investing.
  1. Buy "wonderful" businesses.
  2. Paying a bargain price.
  3. Concentration: Own a few terrific companies.
  4. Have patience.

So, what is a "wonderful" business?

A "wonderful" business:

  1. A huge sustainable competitive advantage - a franchise.
  2. A growing stream of free cash flow.
  3. Simple, understandable.
  4. Stable - The basic business changes little over time.
  5. Predictable earnings.
  6. Consistent, repeated purchases of product or service.
  7. Not natural targets of regulations.
  8. Disaster proof - Most mistakes are forgiven.
  9. A royalty on the growth of others, requiring little capital itself.
  10. Good management.

To learn more of Larry Sarbit.....

Happy Investing,

Dah Hui Lau (David)

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