If I come up with an intelligent investment idea, the ultimate value of the the idea hinges upon my ability to actually put up funds and make an investment in the business that I believe will deliver excellent long-term returns. What is the old Mark Twain quote? Something like: “The man who can read but chooses not to read exercises no advantage over the man who cannot read.” Maybe there is an investing corollary to that: “One who can identify great long-term investment opportunities but does not actually put money into them exercises no advantage over the one who cannot identify great long-term investment opportunities.”
Like the great majority of individual investors, I do not make a single lump-sum investment at one point, but rather, accumulate shares of a given stock over time as surplus capital from labor becomes available.
This leads me to an important conclusion: When I identify … Read the rest of this article!