Ackman’s loss is our lessons.
· They have been preached in this book such as diversification.
· Even with the best evaluation, sometimes we still lose.
· Use mental stop loss.
· Do not follow any guru blindly.
· “Buy Low and Sell High” is better than “Buy High and Sell Higher”.
· Do we want to buy VRX today at $65.45? As of 3/1/2016, P/E is less than 5 and P/FCF is less than 11. It seems to be a good buy but the Debt/Equity is about 5 times.
· The insider sold almost 1 billion worth of the stock in June, 2015 – not a good sign for sure.