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Subject:  Re: How do you invest? Date:  12/6/2006  11:36 PM
Author:  TMFSpiffyPop Number:  395 of 427

Tim, great to see you getting started, here. I think you probably know some of how I invest, but I'm one-part "Motley Fool Investment Guide" and one-part "Rule Breakers, Rule Makers" (the former part). ;)


That is to say, I am focused on growth in both cases, but like to mix big-cap "evergreen" companies that I think are so competitively strong that you should own them for the long haul -- and particularly add to them on weakness -- together with the exciting small-to-mid-cap high-octane growth component.


But really, for me, far more than any numbers appearing either in valuations or income statements, I try to focus on who is actually running these companies, and then also picture the 10-year future for this company and for its industry. Starting with the industry, I like to get a ballpark sense of how much cash flow the industry might generate, and then for the company, how competitive will it be in the battle for profits within its industry. More than anything, I like to find emergent leaders before they hit the front pages of The Wall Street Journal or Forbes.


There's a lot more besides, of course, and in the end the best way to "see" how I invest is to take a look at the different services or scorecards I oversee or have overseen for the past dozen years.


Final point: I'm always open to change. I look to assimilate new ideas, approaches, technologies, etc., and I aim to accommodate them in my thinking and my investments if they seem powerful to me. As a consequence, my approach to investing has evolved continuously since I bought my first stock 22 years ago.


Fool on! --David

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