http://vinvesting.com/docs/munger/art_stockpicking.html
Just thought that I'd share this article by Charlie Munger:
Essential points:
1. Pick good businesses with strong pricing power that can transfer any savings in the business process to the owner.
2. Buy shares that you'll hold forever and ever (i.e. it is better to buy a wonderful stock for a reasonable price than to buy a reasonable stock for a wonderful price) as if you hold for a long long long time the wonderful stock wins out.
3. Markets are efficient most of the time, but it fucks up once a while. And when it does, you act fast and enter with commitment, vigour and courage.
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