Sunday, May 13, 2012

8 Tips on Investing The Third Avenue Way

In a recent report by Third Avenue Value, Ian Lapey discussed the philosophy which has led to Third Avenue's investing success. Here are eight tips from that report, that you might find helpful:
  1. "Focus on the balance sheet and readily ascertainable net asset value."
  2. "Only invest in common stocks issued by companies with strong financial positions."
  3. "Focus on the long term."
  4. "Worry about investment risk, not market risk."
  5. "Do not try to pick the bottom."
  6. "Avoid industries in secular decline."
  7. "Own the fulcrum security [in a company's capital structure]."
  8. "Pay close attention to a management team's long-term track record and incentives."
For more on each, click over to read a paragraph going into more detail on each. And then, having done that, I wish you the best in applying them for profit!

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