This article appeared first on The Stock Market Blueprint Blog.
Having a business mindset is a key characteristic of a value investor. Investors who think like businessmen understand that they are buying companies, not stocks.
This is important because when a businessman buys a company, he bases his decision on the company’s financial statements.
Too many people buy stocks without analyzing the underlying business behind the stock.
Warren Buffett or Jimmy Buffett
There’s a scene in the movie The Wolf of Wall Street where an experienced Mark Hanna (Matthew McConaughey) is mentoring a young Jordan Belfort (Leonardo DiCaprio) on the realities of working as a stock broker.
The scene has a memorable line where Hanna essentially tells Belfort that stock picking is a useless exercise.
