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...
"Invest in businesses with durable competitive advantages, strong cash flows, and management integrity. Quality businesses compound wealth over time and reduce downside risk."
Quality businesses compound wealth and reduce risk.
Read Full Analysis →"Before investing, identify the moat — the sustainable competitive advantage that protects the business from competitors. No moat means no long-term edge."
Identify sustainable competitive moats before investing.
Read Full Analysis →"Not all earnings are equal. Look for recurring, cash-backed earnings rather than accounting profits. High-quality earnings are predictable, sustainable, and convertible to free cash flow."
Evaluate earnings quality, not just quantity.
Read Full Analysis →Jesse Livermore has 3 key principles on business quality. The most important one is "Quality Business Criteria" — Invest in businesses with durable competitive advantages, strong cash flows, and management integrity.
Jesse Livermore applies business quality through several key principles including "Quality Business Criteria" and "Business Moat Assessment". These principles guide practical investment decisions and have been tested across decades of market cycles.
Jesse Livermore's approach to business quality 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.
