The 3 Ways an Investor Can Compromise
GuruFocus: Pick the Winners First – Worry About Price Second
“There are 3 ways an investor can compromise:
1. He can compromise by paying a higher price than he’d like to
2. He can compromise by buying a lesser quality business than he’d like to
3. He can compromise by not buying anything when he’d rather own something
You could use these 3 compromises as a test of what kind of investor you are.
A growth investor – like Phil Fisher – compromises by paying a higher price than he’d like. He won’t compromise on quality. So, he has to compromise on price. A value investor – like Ben Graham – compromises by purchasing a lower quality business than he’d like. He won’t compromise on price. So, he has to comprise on quality. Finally, a focus investor – like me – compromises by not owning any stock when he’d much rather be 100% invested.”
GuruFocus: Pick the Winners First – Worry About Price Second