#1
Management Evaluation
"Evaluate management by their actions, not their words. Look for a track record of capital allocation, shareholder communication, and aligned incentives."
Judge management by actions, not words.
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Jesse Livermore📌 Business Judgment
Jesse Livermore's Business Judgment Rules
Jesse Lauriston Livermore (July 26, 1877 – November 28, 1940) was an American stock trader considered one of the greatest traders in history. He made and lost several fortunes during his career, including famous profits during the 1907 and 1929 market crashes. Livermore began trading at age 14 in Boston bucket shops and developed his own methods for reading market...
3 principles·Business Judgment
3 Key Business Judgment Principles
#2
Industry Structure Analysis
"Understand the industry structure before evaluating any company. Industry economics often matter more than company-specific factors in determining returns."
Industry structure shapes investment outcomes.
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Capital Allocation Assessment
"The most important skill for a CEO is capital allocation. Evaluate how management deploys capital — do they create or destroy value with their decisions?"
Evaluate management's capital allocation skills.
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What are Jesse Livermore's key business judgment principles?
Jesse Livermore has 3 key principles on business judgment. The most important one is "Management Evaluation" — Evaluate management by their actions, not their words.
How does Jesse Livermore apply business judgment in practice?
Jesse Livermore applies business judgment through several key principles including "Management Evaluation" and "Industry Structure Analysis". These principles guide practical investment decisions and have been tested across decades of market cycles.
What makes Jesse Livermore's approach to business judgment unique?
Jesse Livermore's approach to business judgment is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Jesse Livermore provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
