The basis of excellent investing for the last 80 years by successful
investors like Warren Buffett, and it will be the basis of excellent investing 80
years from now. First, understand that Rule # 1 literally is “Don’t Lose Money,” but
what it means in practical terms is to invest with certainty. Certainty comes from
this: buying a wonderful business at an attractive price. The word wonderful
actually encompasses three out of four elements in the Four Ms.
An attractive price means you’re getting a deal. Look for a business with a large
Margin of Safety (MOS). A nice MOS is buying a dollar of value for fifty cents.
Once you know what a business is worth, try to buy it for half price. 50% off is an
attractive price.
These four topics will be your signposts as you travel the path to the perfect
investment. They are an easy way of recalling the steps you need to take from
beginning to end.
In thinking about the process of finding wonderful companies at attractive
prices, it helps to think of what I call the Four Ms: Meaning, Moat, Man-
agement, and Margin of Safety.
These four topics will be your signposts as you travel the path to the perfect investment.
They are an easy way of recalling the steps you need to take from beginning to end.
The easiest way to understanding the Four Ms, and the best way to use them in evaluating
a business you are deciding to invest in, is to think of them as the following questions:
1. Does the business have Meaning to you?
2. Does the business have a wide Moat?
3. Does the business have great Management?
4. Does the business have a wide Margin of Safety?
If you can answer a big unconditional YES to all four of these questions, you’ll know if this
business is one you want to buy.
*If you’re unsure what some of these terms mean, don’t worry we’ll explain throughout
this guide.
For a beginning investor, these four questions can be intimidating and scary. I have good
news. First, it used to take a lot of time to figure this stuff out, but now, with access to the
right tools, that’s no longer true. Second, you only have to find a few businesses you can
say yes to, and you’re pretty much set for a while. From that point on, just monitor your
businesses and let the money roll in. Using Payoneer Master Card is helping me to get paid by companies abroad. Want to know how this can help you too? Get Access Here
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