The Hermitage Investment Guidelines

 Hermitage Holdings

1) "The right company (with the right prospects, inherent industry conditions,management,etc.) means the price will take care of itself...this is what causes the cash register to sing. So the really big money tends to be made by investors who are right on qualitative decisions." Warren Buffett

2) A key characteristic supporting consistent operating history is a sustainable competitive advantage. In other words, a company should have a barrier to entry -- or a kind of moat -- that keeps potential competitors at bay. Warren Buffett

3) "You do things when the opportunities come along. I've had periods in my life when I've had a bundle of ideas come along, and I've had long dry spells. If I get an idea next week, I'll do something. If not, I won't do a damn thing." Warren Buffett

4) "The best stock to buy may be the one you already own." Peter Lynch

5) "Buying stock in utility companies is good because it gives you a higher dividend,but you'll make money in growth stocks.Peter Lynch

6) "I was attracted to fast-food restaurants because they were so easy to understand. A restaurant chain that succeeded in one region had an excellent chance of duplicating its success in another." Peter Lynch

7) "I don't like to sell. We buy everything with the idea that we will hold them forever... That's the kind of shareholder I want with me in Berkshire. I've never had a target price or a target holding period on a stock." Warren Buffett

8) "The very homogeneity of taste in food and fashion that makes for a dull culture also makes fortunes for owners of retail companies and of restaurant companies as well. What sells in one town is almost guaranteed to sell in another." Peter Lynch

9) "I try to stress the idea that a portfolio should have at least ten companies, with one or two providing a fairly good dividend... they have to explain what the company does. If they can't tell the class the service it provides or the products it makes, then they aren't allowed to buy." Peter Lynch

10) "Never invest in any idea you can't illustrate with a crayon." Peter Lynch