JBII vs. Motley Fool's Rule of Investing
I thought I'd share with this board the synergies I see with investing in JBI and the sound, seasoned, and proven approach of The Motley Fool (www.fool.com).
Below are some highlights of their advice for investing, and I believe they all apply 100% to JBI Inc. (with my reasoning in italics)
It's a long post, but its great investing advice and worth the read if you hadn't heard of The Motley Fool.
S.
Principle No. 1: Buy Businesses, Not Tickers. This one is straight from the mouth of famed investor Peter Lynch. Buy into a company's prospects, its future, and its management. Don't try to divine value from a stock chart, and don't blindly invest in a hot industry. Put your money alongside a company you believe will generate shareholder value over the long term.
'nuff said?
Principle No. 2: Be a Lifetime Investor. Be a long-term investors who believes in capitalism and thriving industry. Don't just buy stocks and forget about them. Keep tabs on them, follow the news, study the earnings reports, and strive to learn more about the industries. Also add money to your shares each month, so you're continuously saving and investing.
Principle No. 4: Fish Where Others Aren't. Don't just follow the crowds. Think for yourselves, doing your own research, and making your own decisions.
this board has some great DD posts
Principle No. 5: Check Emotions at the Door. Recognize that stocks will move up or down for a variety of reasons -- and often these movements happen daily. Manage your temperament and don't let your emotions affect your decisions. If stocks you like dip for an unjustified reason, load up rather than sell out.
here, here!
David's Rule No. 1: Invest in companies with unquantifiable greatness; a secret sauce that gives them an edge. For consumer facing businesses, that means finding products that are sticky; products that fasten themselves to peoples' daily lives. Team David asks: How would consumers react if someone took that company off the face of the earth tomorrow? Team David wants businesses that have "the love." In other situations, unquantifiable greatness means looking at businesses at the early stages of any one of 20 possible futures. Generally this kind of wide open landscape bodes extremely well for investors.
JBI is rare in this sense. Pak-It products are concentrated "love". We are VERY early in JBI today!
David's Rule No. 2: Choose companies that will benefit from undeniable, long-term trends. The 90s was the age of the Internet -- an undeniable revolution in information. Prescient investors knew this and clung to the greatest businesses within it. Today, we can see these irrefutable movements all around us: energy, entertainment, healthcare, etc. Once you're able to identify a trend, concentrate on finding the smartest, most forward thinking businesses within them.
Trends: Eco-friendly product line, reducing CO2 footprints (Pak-It), foreign oil dependence, waste reduction..
David's Rule No. 3: Get in early on a great business and don't haggle on the price. When Team David finds a stock with great mojo, they don't quibble over a couple of dollars in the price. In the long run, a few cents and dollars will mean nothing if you get in early on a top-notch business. As these stocks continue to succeed, Team David invests more in them -- and doesn't shy away from them.
Tom's Rule No. 3. Seek shareholder-friendly management teams with ownership stakes. Team Tom looks for loyalty and experience in the executive suite and boardroom. Before investing, they ask: "Would I want the CEO babysitting my kids? Would I want the CFO managing my portfolio? Would Warren Buffett have these guys over for dinner?" Reasonable compensation, insider ownership, and minimal share dilution are strong signals that the interests of the team running the company are aligned with shareholders'.
JB has > 60% ownership and didn't dilute shares through THREE acquisitions
