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VIC Investing Club  ·  Issue No. 005
The Foundation Series

Stop Buying Stocks.
Start Buying Businesses.

Most people aren't investing — they're reacting. They follow headlines, jump in late, and wonder why it doesn't work. Real investors think like owners. Here's how to do it.

Most people don't invest. They buy whatever sounds good and hope it goes up. They follow Twitter. They see a name trending, watch the price climbing, and jump in late — no understanding, no process. That's not investing. That's reacting.

And reacting will have you chasing instead of building. Every single time.

If you want to build real wealth, you have to look at what you're buying like you're buying the whole thing — the entire business. Not the ticker. Not the chart. The business.

Three Questions. That's It.

I'm going to simplify this like we're talking over dinner. When I look at a company, I'm really only asking three things.

The Owner's Framework
1
Is it growing?
Revenue going up consistently? If it's flat, I'm not interested.
2
Is it actually making money?
Not hype. Not projections. Real earnings hitting the bottom line.
3
Is it keeping enough to stay strong?
Is the business efficient? Does it generate cash and reinvest it well?

That's it. You don't need a finance degree for this. You need common sense. If a company isn't growing, isn't making real money, and isn't efficient — why would you own it?

The "On It" Test — Four Checks Before I Buy

Before I touch any stock, it has to pass four simple checks. I call it the On It Test. If it fails any one of these, I keep moving.

The On It Test
Four checks. Every stock. No exceptions.
1
Is the business growing?
Revenue needs to be moving in the right direction. Flat revenue means a stagnant business. I'm not in the stagnant business.
2
Does it make real money?
Not hype. Not projections five years out. Actual earnings. Actual profit. Show me the money.
3
Is it a leader in its space?
I don't want average. I want best in class. Who owns the market? Who's the dominant player? That's who I want to own a piece of.
4
Do I understand how it makes money?
If I can't explain it simply — to my wife, to a friend, in two sentences — I don't buy it. No exceptions.

The NVIDIA Lesson I Had to Learn

Real Talk · Personal Miss
I passed on NVIDIA. Here's exactly why — and what it cost me.

I heard about NVIDIA early. People were talking about it. I saw the buzz. But when I asked myself the fourth check — do I understand how this company makes money? — I couldn't answer it clearly. I couldn't explain what it did, why it mattered, or how big it could become. So I stayed out.

That was a miss. Because NVIDIA didn't just make chips. It became the backbone of AI. The infrastructure underneath everything. And by the time I fully understood it, I'd already missed the early entry.

I'm in it now — but I didn't get in early. And that's on me. Not because NVIDIA wasn't a great business. But because I didn't do the work to understand it when it mattered.

The lesson: This takes work. When you own a piece of a business, you have to have some real interaction with it — understand its product, its market, its competition. No such thing as easy money. Own what you understand.

If I can't explain how a company makes money, that's like buying a car with no engine. It might look good — but you're not going anywhere.

— Vic Sisa

Own What You Understand

I don't skip stocks because they're bad. I skip them because I'm not ready. That's a different thing entirely. When you know the difference, you stop feeling like you're missing out — and you start feeling like you're being disciplined.

🚗

The car analogy. Buying a stock you don't understand is like buying a car without knowing if it has an engine. It might look good sitting in the driveway. But you're not going anywhere. The price doesn't matter if the business underneath it doesn't make sense to you.

Now I move different. If I don't understand it, I don't touch it — until I do.

The Ultimate Owner's Question
Would I be comfortable owning this
even if the price didn't move for a year?
If the answer is no — don't be surprised when it doesn't work out.
You're not buying stocks. You're buying businesses.
· · ·

Now that you know how to read a business, the next question is: are you paying a fair price for it? In Issue 006, we get into valuation — P/E ratios, margin of safety, and how to know when a great business is actually worth buying. Don't skip it.

Up Next: Step 6 — Are You Paying a Fair Price?

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