TMF Interview with Mark Sellers

Emil Lee: How does your firm go about researching an investment idea?

Mark Sellers: The first thing we do is figure out what the problem is. Ninety percent of making money in stocks is not losing money, which has to do with knowing what the problem is and how it can be solved. Every company we buy has a problem with it, otherwise it wouldn't be cheap.

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Lee: Do you have any other advice on how to judge a management team?

Sellers: If a company puts out a press release saying "Company XYZ Beats Guidance," then that company may be too promotional and too focused on "beating" earnings estimates. If another company puts out a press release saying, "XYZ Reports Third-Quarter Earnings," they're not being too promotional. You can tell a lot from just observing and reading.

Direct Link - Mark Sellers, Intelligent Investor.