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Invest in Profitable Companies with Strong Business Performance
The speaker emphasizes the approach of heavily concentrating equity investments in companies with favorable economic characteristics and competent, honest management. They prioritize purchasing these companies at an attractive price compared to their value and place little importance on stock market fluctuations, instead focusing on business performance. The goal is to invest in profitable companies across different industries, continually adding to the portfolio as more profitable opportunities arise. While not easy, the approach is simple and taken to the extreme in line with the philosophy of legendary investors like Buffett and Munger.