You Can Lose Leverage, And

In The Business World, The Rearview Mirror Is Always Clearer Than The Windshield.

The One Piece Of Advice I Can Give You Is, Do What Turns You On. Do Something That If You Had All The Money In The World, You’d Still Be Doing It. You’ve Got To Have A Reason To Jump Out Of Bed In The Morning.

As An Investor With Small Capital, One Should Prefer Businesses That Have High Returns On Capital And That Require Little Incremental Investment To Grow.

Many Stock Options In The Corporate World Have Worked In Exactly That Fashion: They Have Gained In Value Simply Because Management Retained Earnings, Not Because It Did Well With The Capital In Its Hands.

What An Investor Needs Is The Ability To Correctly Evaluate Selected Businesses. Note That Word “selected”: You Don't Have To Be An Expert On Every Company, Or Even Many. You Only Have To Be Able To Evaluate Companies Within Your Circle Of Competence. The Size Of That Circle Is Not Very Important; Knowing Its Boundaries, However, Is Vital.