The Intellectual Investor: The Best and Worst Investment Decisions I’ve Made

Over a lifetime of investing, the top ideas and the bottom ideas will truly stand out. And as long as investors keep their losses small, overall returns may come down to a few big winners.

Understanding how other investors have made big winners and what they’re looking for can help find similar ideas. That’s true whether your preferred style of investing is value, growth, or a hybrid approach.

For instance, one successful investment is Uber (UBER). The rideshare company has stood out as a technology company, in part because it also has an analog component. The company earns a small fee connecting those with vehicles with those who need rides.

It’s a simple, repeatable process. But Uber doesn’t have to pay for the physical vehicles used.

Another interesting component to its success is that it’s become an industry leader. More importantly, it’s such a leader that it’s become a verb, like Xerox in photocopying.

These characteristics are likely to help the company continue to grow. And to grow its profits over time.

Meanwhile, losing investments often have similar characteristics. They may have low-quality balance sheets. They may use complex financial operations to obscure their safety. And management may be questionable.

Investors who can focus on companies providing a great user experience may find big winners of their own. Especially if they avoid questionable behaviors.

To read the full analysis, click here.