In the practice of value investing, just like with so many other things in life, knowing when to wait patiently or when to jump ship is critical to the long-term success of your portfolio.

Being able to stomach market fluctuations isn’t something that everyone is capable of, but the mindset of buying into a business with long-term goals of generating cash flow means buying with the confidence that you’ll be able to weather the storms that may, and often do, come your way.

As the series on the Weather Matrix continues, Phil and Danielle discuss the importance of being in the “high understanding” quadrant of this tool as you consider potential investments and how that position makes it easier for you to decide what to buy and what to reject.

For a leg up on practices for generating consistent returns, click here for your free copy of How to Pick Stocks: The 5-Step Checklist: https://bit.ly/3ros8mU

Topics Discussed:

• The power of compounding
• Vanderbilts vs Rockefellers
• Owner earnings
• Investments vs speculation
• Inverting
• Durable competitive advantage
• Pitch decks

Resources Discussed:

• David Einhorn’s pitch decks

Learn more about your ad choices. Visit megaphone.fm/adchoices