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Stay out of the spotlight… Never sell a great business… One “lost stock” is up more than 60% this year… Richest inefficiencies where Wall Street isn’t looking… Porter’s top 10 “lost stocks”… The yield curve gets steeper… Buffett’s bad investment… |
Table of Contents
“Stay out of the spotlight.”
My good friend Van Simmons is the world’s most renowned dealer of rare gold coins. He invented the Professional Coin Grading System, which allowed collectors to more accurately grade the quality of their collections.
Over the last 40 years, Van has traveled all around the world meeting with the world’s wealthiest coin collectors, some of whom are also the world’s wealthiest people. You won’t find their names on the Forbes list though. Or any other list for that matter. The first rule of lasting wealth is: stay out of the spotlight.
And the second rule? Never sell a great business.
Put these two ideas together and you’ll quickly understand the underlying advantage of investing in what I call “Lost Stocks.”
You may recall that I first described the strategy in the Daily Journal in January.
What are lost stocks? They are businesses that create incredible wealth, not through the expansion of their equity multiple with the Wall Street marketing machine or by constantly raising new capital. Instead these businesses create wealth by their own internal cash generation plus excellent capital allocation.
These companies are run by excellent investors hiding inside businesses that everyone ignores.