chapter 3
Shares – developing an investment thesis
‘Every stock you own should have an investment thesis’
‘You should look at stocks as small pieces of business’
Warren Buffett
‘A stock doesn’t know that you own it’
Warren Buffet
‘Stock price movements actually begin to reflect new developments before it is generally recognised that they have taken place’
Arthur Zeikel
My colleague Peter Lynch said that you should be able to summarise in a few sentences why you own a particular company’s shares in a way that even your teenage son or daughter would understand. This is excellent advice. This is your investment thesis and I would go on to say that you should retest this thesis at regular intervals. Although your investment thesis sets out ...
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