A simple formula for investing success

• Simple formula for investing success GRIP = Good Company + Right Price + Investment + Patience
• Good company:
• Moat, Growth, Capital allocation record, Company's culture, Strength of it's financials: Continuously learning about the business over the life of the investment is an essential component to investing success. Initially, your focus should be on determining whether or not the company possesses durable competitive advantages (i.e. an economic moat), what it's growth runway looks like, the skill with which management allocates shareholder capital, the company's culture, the strength of its financials, and so on.
• Right Price:
• Even a good company can make for a bad investment if you overpay for it, so it's important to consider valuation before making any investment.
• Invest when upsides outweighs downside.
• Have potential range of buy value
• The simple the model, better.
• Investment:
• When you have good company available at good price, invest. Consider margin of safety when investing to protect downside when you are wrong.
• Investing success is impossible unless money is actually put to work.
• Patience:
• Once you have made investment, let it compound and do not trouble until selling criteria is triggered.
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Source: http://www.cleareyesinvesting.com/2015/02/a-fresh-look-at-simple-formula.html