François Rochon is one of the most successful modern Value Investors in the world.
Over the last 30 years, he returned 5,355% vs 1,177% for the S&P.
Here's how he values stocks and invests👇
(+ Free PDF of all his Shareholder Letters!)
Over the last 30 years, he returned 5,355% vs 1,177% for the S&P.
Here's how he values stocks and invests👇
(+ Free PDF of all his Shareholder Letters!)
1. The 4 Pillars of Investing
Rochon looks for four things when he invests in a company.
It's about Valuation, Management, the Business Model, and the Financial Strength.
He's looking for industry leaders and long-term compounders.
Rochon looks for four things when he invests in a company.
It's about Valuation, Management, the Business Model, and the Financial Strength.
He's looking for industry leaders and long-term compounders.
2. Owner's Earnings
Owner's Earnings is a term that originally came from Buffett.
The idea is to figure out how much cash actually goes to the owners.
Rochon uses the Owner's Earnings to estimate the intrinsic value growth of a company.
Owner's Earnings is a term that originally came from Buffett.
The idea is to figure out how much cash actually goes to the owners.
Rochon uses the Owner's Earnings to estimate the intrinsic value growth of a company.
3. Multiple Expansion
Multiple expansion plays a big role in the success of an investment.
However, Rochon doesn't pay much attention to that.
It's too unpredictable to include it in your valuation.
Buy great businesses at low prices, and it'll take care of itself.
Multiple expansion plays a big role in the success of an investment.
However, Rochon doesn't pay much attention to that.
It's too unpredictable to include it in your valuation.
Buy great businesses at low prices, and it'll take care of itself.
4. Psychology Traits
Investing is more of an art than a science.
And a big part of that is how you handle your psychology.
4.1 Patience vs. Stubbornness
Investing is more of an art than a science.
And a big part of that is how you handle your psychology.
4.1 Patience vs. Stubbornness
4.2 Humility
Be aware of what you can do and what you can't do.
You can... analyze a business and come up with a thesis.
You can't... predict macro events and their impact on the stock market.
And most importantly, you can make mistakes, but you can't repeat them.
Be aware of what you can do and what you can't do.
You can... analyze a business and come up with a thesis.
You can't... predict macro events and their impact on the stock market.
And most importantly, you can make mistakes, but you can't repeat them.
Here's the Free PDF of all his Shareholder Letters:
danielmnke.com
danielmnke.com
That's it for today!
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Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
If you enjoyed it, please Like and Retweet this Thread so more people can see it!
Follow me @MnkeDaniel to learn more about Investing.
Have a great day!
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