Becoming
Financially
Independent
An Investment Management Company
Tutorial - Making Money
So how does this investing technique make money?  
  1. Since you are buying businesses with Economic Moats, the Intrinsic Value
    should increase each year because the company is not faced with overwhelming  
    competition.  As the Intrinsic Value increases each year, the price of the stock
    will eventually increase as well.
  2. Since you are buying businesses at a discount to their Intrinsic Value, the
    price of the stock will eventually "return to the mean", or return to the Intrinsic
    Value of the stock.  In other words, the investing lemmings who ran from the
    stock in fear will eventually return (and drive up the stock's price).  Therefore,
    you will not only enjoy the natural appreciation of the Intrinsic Value from year
    to year, but you will also get this bonus caused by buying below the Intrinsic
    Value.
  3. These companies with sustained competitive advantages tend to weather
    recessions much better than those in a highly competitive environment.
  4. Because you have purchased stocks at a discount to their Intrinsic Value
    which have significant Economic Moats managed by good stewards who look
    after the investors' best interests,  you can concentrate your portfolio to achieve
    higher than market-average returns and still sleep well at night.  (More on
    portfolio management later.)


Alright, so we're ready to purchase the right stocks at the right price.  We know how to
measure our investment results using a long-term yard stick, and we understand how
this is going to make us money.  We have faith in the program.  So when do we sell
these stocks?  Click Here to learn When to Sell.
Investing   
Wisely  
The advice contained within this website is general in nature, only for the use of FI Investments clients, and should not be relied upon without first
consulting with FI Investments.