Monday, September 14, 2009

Lou Simpson on Investing

Lou Simpson manages his portfolio according to five basic principles. He outlined these timeless principles in GEICO's 1986 annual report,

  1. Think independently.
  2. Invest in high-return businesses that are fun for the shareholders.
  3. Pay only a reasonable price, even for an excellent business.
  4. Invest for the long term
  5. Do not diversify excessively.

Read the rest.