Investment Portfolio Check List

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Great Business：60-70%
1. Understandable
2. Moat: durable competitive strengths
3. able and high-grade management
4. 厚厚的雪: good returns on the net tangible assets required to operate the business
5. 长长的坡: opportunities for internal growth at attractive returns
6. at a fair price
Cigar Butt：20%
Momentum，news，high Tech： 10%
Cash Level：
1. market depression: <0 or 0 [borrow less than 30%]
2. P/E above average X%: X/2%
3. No good investments: prepare the washtubs
Sell points
1. Great businesses: sell 50% when the valuation is 50% (30% for 20%); or move around
2. Cigar Butt: sell all when its price reaches fair value.
3. Momentum: depends on conditions; flexible, adjust frequently
Prepare the washtubs
1. Bonds
2. Real estate
Circle of competence [能力圈]
1. 电器[格力，美的，老板，苏泊尔]
2. 白酒[]
3. 游戏[]
4. 保险[?]
5. 银行[?]
6. 医药[?]

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