During this interview with McKinsey, John Rogers was asked what principles had guided him through tough periods of higher risk and uncertainty. Here is his response:
Rogers: Something so important to successful investing is not getting outside of your comfort zone, trying to own a little bit of everything, or buying what worked yesterday.
You’re going to have to have the courage of your conviction when you know your industries and your companies better than anyone else because when you’ve got that deep knowledge it becomes baked into your research process.
Second thing is to find one more reference, one more reference check, one more call you can make, and talk to more industry experts.
Constantly try to search for information that will help you make better decisions during the most difficult times.
And then finally, staying true to the belief that you not only want to buy good companies that have high-profit margins, strong cash flows, have real moats around them so they can invest for the sake of being around for the long-term, but you want to buy those companies when they’re on sale.
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