What’s left is a very small handful of simple, well-understood businesses under distress We begin by eliminating all businesses that are either not simple businesses or fall squarely outside our circle of competence. How can we ever get our arms around all of them? Well, we don’t.
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The ones with the largest drops are likely the most distressed This list of 40 stocks routinely shows price drops of 20 percent to 70 percent over that period. It is another terrific indicator of distress.
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It is not a complete summary of the book. Later I turn those highlights into a blogpost. Note: While reading a book whenever I come across something interesting, I highlight it on my Kindle.