Invest in simple companies and projects that you can understand. Some companies are rarely onions where you have layers of peel back to comprehend them.
Great companies make great stocks, and for them, the market always pays a premium. Discard the notion of investing in an undervalued business that would remain undervalued. Study to identify undervalued projects and or companies that would be overvalued.
Great projects will remain overvalued because they are easy to understand, and there are little value and attention put on the plain, great simple projects.
For the same reason why you want to concentrate on those projects, some would also do the same. You will be able to describe the business in a minute or less when you understand the project or company. I would certainly not go there if it's difficult and takes more time.
It will be fascinating, as an investor, not to invest where the institutions are but to invest where they will later go.
Finding these great projects and companies when they are small is the secret. You have the luxury of not only profit growth but also multiple expansion when you find them when they are small and undiscovered.
This mixture, often very quickly, creates multi-baggers, and that's why it's important to find these nice, simple companies early.
