Every business has a strategy, a plan for beating its competitors. It’s a good idea for an investor to assess that strategy before investing in the company. But doing so is complicated.
Obviously, an orange has some intrinsic value. It is nutritious and tasty and can be used in a variety of ways. It has value on its own and has value as an ingredient. But what is that value? Fifty cents? Three dollars?
In 2016, the analyst, teacher, writer, and researcher Michael J. Mauboussin published a white paper called “Thirty Years: Reflections on the Ten Attributes of Great Investors.” In it, he outlines “the top ten attributes” that he believes “great fundamental investors share.”