Preston Pysh > Quotes

“1. A stock must be managed by vigilant leaders. 2. A stock must have long-term prospects. 3. A stock must be stable and understandable. 4. A stock must be undervalued.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Buffett is quoted as saying, “Be fearful when others are greedy, and greedy when others are fearful.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“price/book ratio between .6 and 1.5.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“The point of this exercise is to allow you the opportunity to understand a very important term that is used in calculating the value of your future stock picks: equity. Just as you calculated your own equity, businesses do the exact same thing every quarter (or every three months).”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Stocks During Fear Cycles (Recessions): These are the least risky and most profitable times for purchasing stock. During Greed Cycles (Bull Markets): These are the most risky and least profitable times for purchasing stocks. Bonds During Fear Cycles (Recessions): These are the most risky and least profitable times for purchasing bonds.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Current Ratio = Current Assets / Current Liabilities As you put hypothetical numbers into this equation, you’ll quickly see that a 1.0 means the company won’t owe or earn capital. As the number becomes larger, it becomes evident that the company has an easier time paying its liabilities and won’t need to issue more debt. When I’m analyzing a business, I’ll never consider a business that has a current ratio below a 1.0.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Operating Activities: This is all the activity that involves earning money. Investing Activities: This is all the activity that involves buying or selling assets. Financing Activities: This is all the activity that involves acquiring debt or paying it off.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“If accumulating assets is the key to building wealth, accumulating liabilities would accomplish the exact opposite.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“1. Investors give fund managers money at the wrong time. Now that you’ve had some time to read this book and understand the importance of buying stocks during fear cycles and holding during greed cycles, this first indicator should make sense. To understand this principle, imagine that you’re the fund manager of a $100 billion investment fund. When the stock market crashes and you’re able to purchase severely undervalued businesses with minimal debt, not only do you lack funds to invest, but all your resources are being depleted by scared investors. Instead of receiving money to buy the great deals, your investors are selling their shares in the fund and you don’t have the capacity to take advantage of the market behavior. This reason alone severely handicaps fund managers as they attempt to beat the market.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“Though the market doesn’t really produce anything, it does grow over time as a factor of the businesses and the labor it represents. Thus, ultimately, the average investor does make money.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“As Smith studied “wealthy” societies, he learned they all had certain elements in common: citizens possessed individual liberties, limited government, open markets, and swift judicial systems.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“The Four Golden Rules   An investment must be managed by vigilant leaders. An investment must have long-term prospects. An investment must be stable and understandable. An investment must be undervalued.  ”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“When P/BV is 1.5 or less And P/E is 15 or less You’ll get the following result: 1.5 * 15 = 22.5”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“increasing the desire to produce more labor will result in more luxuries for all to enjoy.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“Businesses are nothing more than purchasing stocks, and providing loans is nothing more than purchasing bonds.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“The Intelligent Investor, Security Analysis, and The Wealth of Nations.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“The key parts you’ve hopefully learned are the following: 1. There are four rules to investing. All four must be met in order to purchase an asset. 2. Financial markets move on emotion in the short term but follow value in the long term. As a result, always possess patience, knowledge, and think for yourself. 3. Every month you need to purchase assets in order to increase cash flow. Use that compounding cash flow to always reinvest in the most undervalued assets. In the end, it’s all about share accumulation. 4. When you don’t understand terms or concepts, do the research. That’s the only way you’ll ever know.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“If the P/BV * P/E < 22.5 then it was a worth look.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“try to always buy companies that have a Debt/Equity ratio below 0.50)”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Now don’t forget, this company’s book value is growing because of one figure – the earnings. As you look back to the beginning of this section, remember the diagram that shows the two options a company has to distribute or invest its earnings.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“If this was a business, it would do one of two things with the $3.00 of earnings per share: pay a portion of the earnings to the shareholder (known as a dividend) or retain the money as equity (therefore, the $25.60 of book value would increase). Like”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Be fearful when others are greedy, and greedy when others are fearful.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“As a conservative investor, you want to ensure the current ratio is higher than a 1.5.”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“still pay taxes on dividends regardless of the length of ownership.)”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Though the market doesn’t really produce anything, it does grow over time as a factor of the businesses and the labor it represents.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“(As a general rule of thumb, I try to always buy companies that have a Debt/Equity ratio below 0.50)”
― Preston Pysh, Warren Buffett's Three Favorite Books

“Course 1, Unit 1 Stock 101”
― Preston G. Pysh, Warren Buffett's Three Favorite Books

“One of the most fundamental concepts of making money in the stock market is buying a company that you can hold forever.”
― Preston Pysh, Warren Buffett's Three Favorite Books

“the success of a stock pick heavily relies on the purchase price as much as the productivity of the already-successful business.”
― Preston Pysh, Warren Buffett's Three Favorite Books