writser,
the problem is you are judging a thought process… without knowing it!
So, now let me try to summarize it as best as I can:
I buy businesses to hold them as long as possible.
I run two businesses every day.
This activity doesn’t let me jump in and out of stocks frequently.
I wouldn’t be able to muster the required confidence, and therefore I would make many mistakes.
If you buy and hold, to get satisfactory results, you must choose well.
JNJ, KO, WMT, etc. most probably won’t do.
My idea of choosing well is small to medium caps, with still great potential for growth.
They are risky: LRE is no JNJ, KO, WMT… LRE was founded the year I founded my company…
Then, how to reduce the risk? Two ways:
a) To be always very conscious about the price I pay
b) To require also an outstanding owner/manager
In fact, I require 1), 2), and 3): an outstanding owner/manger, steady and safe fcf, a good price.
If I’d invest in JNJ, KO, WMT, 1) would clearly not be a requisite.
Adding that requisite, and concentrating on small to medium caps, which are inherently riskier, I hope to achieve better results, running almost the same level of risk.
I am not saying my thought process is good for you, or anyone else. There are plenty of ways you certainly might do much better! And, probably, if I quit running my businesses, and I concentrate only on trading, I might become richer, faster!… But I love what I do. Some additional percentage points at the end of the year are no good reasons for a change…
Gio