Key Takeaways
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- Need to question everything. What management/analysts/investment banks/etc. say/do/write. Never accept anything as truth until you yourself have read it over and know it for a fact
- There were three basic questions to resolve: First, what are the true economics of the business? Second, how do the economics compare to the reported earnings? Third, how are the interests of the decision makers aligned with the investors?
- The trick is to avoid losers. Losers are terrible because it takes a success to offset them just to get back to even.
- Holding eight stocks eliminates 81 percent of the risk in owning just one stock, and holding thirty-two stocks eliminates 96 percent of the risk
- Making a mistake on an actual investment is far more dire than missing a good opportunity
- The stock Einhorn discusses is Allied. Allied is a Business Development Company which is a public company which is hired by small businesses to help them grow during their early stages
- The stages Einhorn discusses and the amount of research invested into this holding is extraordinary
What I got out of it
- Question absolutely everything and don't take something for granted until you prove it to yourself and it makes sense to you. There's often a very real, tangible reason people are successful. The amount of research done by Einhorn and his team is amazing