Subject Francois Rochon

• Patience
• Humility
• Rationality

* Keep a small portfolio
* Longer horizons
* Don’t follow the herd
* Can’t predict the market

Debt to Profit will tell you how long a company will take to pay off it’s debt

Consistent Moats are driven by managers .

Quote: “Would I like this person to marry my daughter/son?”

What will be the profit in 5 years?
What would the PE be?
If the price is half that today, they buy
* Shortlist companies trading at discount to thier 5 year median P/E or P/B

Don’t try to predict macro events
focus on profit growth, does the price reflect it?
learn from your mistakes

Rule of three:

• 1 out of 3 years, market will decline by 10%
• 1 out of 3 shares selected will not perform as expected
• 1 out of 3 years, the team will not out perform the index.

Google Talk
* https://www.youtube.com/watch?v=ejmn_pxJwtI