Pat Dorsey's Secrets to Investing Success

Do your homework

Never invest before thoroughly understanding the business. Dorsey believes, “Unless you know the business inside and out, you shouldn't buy the stock".

Look for businesses with economic moats

Dorsey says, “Economic moats allow a relatively small number of companies to retain above-average levels of profitability for many years”.

Stay away from expensive stocks

Don’t pay whatever the market is asking for. Dorsey argues, “The goal of any investor should be to buy stocks for less than they're really worth”.

Invest for the long-term

“Investing should be a long-term commitment because short-term trading means you're playing a loser's game”, asserts Dorsey.

Know when to sell

Don’t hang on to losers too long. Dorsey contends, "Knowing when it's appropriate to bail out of a stock is at least as important as knowing when to buy one”.

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