“Invert, always invert” — Charlie Munger
To become a top-notch Rule #1 investor, having a well-defined investing strategy is essential. It starts with crafting a compelling narrative for the company you’re eyeing and understanding why it’s a stellar investment. But here’s the twist: flip that narrative on its head and scrutinize the opposing viewpoint.
Challenge yourself to construct a case against the investment. If you can’t, it’s a sign that you might lack comprehensive knowledge about the company. When applying inversions to business acquisitions, consider formulating a robust inversion for every reason supporting the purchase.
Familiarize yourself with every argument against buying the company, surpassing even the short sellers’ insights. Develop compelling rebuttals for each inversion, effectively nullifying them and proving the short sellers wrong!
Join Phil & Danielle in this throwback episode as they delve into the significance of inversion and highlight four essential aspects to contemplate when integrating it into your investing strategy.
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