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999 Warren Buffett Quotes - Learn His Secrets of Investing During & After Crisis

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One Up On Wall Street SUMMARY Conclusion Chapter 20 – 50,000 Frenchmen Can Be Wrong

The market, like individual stocks, can move in the opposite direction of the fundamentals over the short term Be optimistic about America and investing in general Market declines are great opportunities to buy stocks in companies that you like You can never predict the market It takes years, not months to produce big results You can make serious money by compounding a series of 20-30 percent gains in Stalwarts Stock prices often move in opposite direction but the long term, the direct and sustainability of profits will prevail Buying a company just because its cheap is a losing strategy Selling an outstanding fast grower because its stock slights overpriced is a losing technique You don’t lose anything by not owning a successful stock Stock doesn’t know that you own it Don’t be attached to a winner Don’t stop monitoring the story If you don’t think you can beat the market then buy a mutual fund Keep an open mind to new ideas Read One Up On Wall Street by Peter Lynch Chapter 19 full su...
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The Dhandho Investor SUMMARY Chapter 11 Dhandho 302: Fixate on Arbitrage

With arbitrage, the appeal is, “Heads, I win; tails, I breakeven or win!

1. Traditional Commodity Arbitrage
If gold is trading in London at $600 per ounce and is changing hands at $610 per ounce in New York City, an arbitrageur can buy in London and immediately sell in New York, capturing the spread.

2. Correlated Stock Arbitrage
Sometimes holding company stocks trade at a discount to a sum
of the parts even if the parts are individually publicly traded. Sometimes the same stock on different exchanges can have price differences.

3. Merger Arbitrage
Public company A announces to buy public company B
for $15 a share. B was trading at $10 a share; immediately after the announcement, B goes to $14 a share. If an investor buys B at $14 and holds the stock until the deal closes, then the $1 spread can be captured for a tidy profit in a few months. However, there is always some risk that the deal does not close.

4. Dhandho Arbitrage
Most startups engage in Dhandho Arbitrage. Offering gap to be filled that gives supernormal profits for a period of time. Eventually the gap will close as competitors pop up or when consumers move to something else.

An enduring Dhandho arbitrage spread is what Warren Buffett called a moat.

The key to investing is not assessing how much an industry
is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.
—Warren Buffett

Always look for arbitrage opportunities. They allow you to earn a high return on invested capital with virtually no risk.

Watch The Dhandho Investor Chapter 10 full summary here 👇:
https://youtu.be/OuADyepd-5o

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