1. A mind free shares: shares a lot of people handle every day, every day would like to share, do post every day, and I found that Buffett’s approach is completely different: do not look to see the company stock, do not want the price to value, not to make speculative investments . With many people’s eyes compared to only stock prices, Buffett did not stock, but as investment shares into business as a real investment: “You do not buy the stock, but the company.”Stock Market Today – Stock Quotes | Market Watch | Financial News http://www.stockmarkettoday.cc/
2. Safety First: Many people ask for money to life, in order to make money rather the huge investment, Buffett has stressed safety first, money second, losing money may be small, the possibility of large profits only when the shot. Buffett said: “The margin of safety is the cornerstone of investment success.” The margin of safety often appear in the stock market crash, good company when the stock price plunged. Most people like to chase sell, Warren Buffett on the contrary, abandoned as I get, people take me for.
3. Stock picking as election Wife: A lot of people picking is very frivolous, frequent conversion, Buffett irony for the stock market, “one-night stand”, he was selected stock picking as his wife: “We are looking for investment targets in the attitude and look for life partner exactly the same attitude. “I be summarized in three points: the attitude of caution and strict standards, very little amount.
4. To know ourselves: to know ourselves and be victorious. Warren Buffett minimal loss of stock selection, one important reason is that he only vote for those who own very familiar, very familiar, very sure of outstanding shares. He repeatedly stressed that the first principle of investment is the ability to circle principle: “capacity ring size is not important, the ability to know their boundaries is critical circle.” I’m picking it summed up three major precepts: can not choose, unfamiliar not vote, do not understand not vote.
5. First-class business: Buffett said: “We insist on looking for business-class company.” While ordinary investors to determine whether the business class is the simplest and most effective way to grasp the core of the key points: the brand. Best reflects the core business is first class brand, and first-class brand must have three elements: the famous, old, big.Stock Market Today – Stock Quotes | Market Watch | Financial News http://www.stockmarkettoday.cc/
6. Top management: Warren Buffett’s company to find not only a first-class business, but also have first-class management. He told us: “the acquisition of companies and buy shares, we want to buy the target company not only good business, but also have extraordinary outstanding, smart and capable, the subject of the beloved manager.” Buffett is often just like the company’s managers bought the company’s stock. I will be required for managers Buffett summed up as both ability and integrity, especially in demanding ethical, honest, sincere, loyal, in fact, is what we often say “Three Masters”: telling the truth, do practical things the old , so honest.
7. First-class performance: Warren Buffett said: “I just like those proved to have the continued profitability of the enterprise.” Promote long-term stock price continued to rise, and eventually only one force: profitable growth. I found that drive prices in the process of performance and the launch vehicle to promote the satellite into space, the process is very similar. As a listed company’s share price satellite launch vehicle to promote its profitability like, but also can be divided into three levels, first level is the gross profit, net profit of the second level is the third level is retained earnings. Buffett’s first-class performance required to meet three criteria: high-margin, high ROE, high retained earnings stock conversion.
8. Value Assessment: Warren Buffett has a famous saying: “You pay the price, but you get value.” Key to value investing is what you get is far greater than the value of the price you pay. The biggest difficulty is that value investing, the price is clear, but the value is very clear, only about the assessment themselves. The main valuation methods are generally based on three areas: asset value, profitability, cash flow. Buffett believes that free cash flow for valuation according to the most correct way.
9. Focus on investment: a very popular investment approach is to spread investments, do not put your eggs in one basket, but buy a lot of stocks, each stock to buy only a little, this seems more robust, making money is even greater. Buffett opposes diversification, advocates focus on investment: “Do not put all your eggs in one basket, this approach is wrong, the investment should be like Mark Twain suggested, put all your eggs in one basket years, and then watch that basket. “” Our investment concentrated in only a few outstanding companies who, we are focused investors. “I think it is similar to Buffett’s investment principles focus on the military principle of concentration of forces, popular that is to bet big to win big, but it requires three conditions: win big need great wisdom, great gambling need to Dayong, Dacheng need a big bear.http://www.stockmarkettoday.cc/best-10-tips-for-stock-investment.html
10. Long-term investment: Warren Buffett joked that his head with the butt earn money more than, in fact, better than anyone else because he could get is maintained: “My favorite time of holding a stock is: never . “long-held, easy to say, it is hard. Buffett was able to sum up my long-held stock is years or even decades is the secret of three heart: the determination not to sell dead; confidence, not to sell more profitable; perseverance, ups and downs do not sell. But need to note is that Buffett does not sell long-held and has been only a very small number of stocks, Buffett will also hold a lot of stock after a few years time to sell.
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PeterSchiffBlog.com – Invest like this yourself by reading the book – http Warren Buffett and Charlie Munger are two of the greatest investors of all time. Thousands of people go to Omaha every year just to hear a few minutes of their investment advice. What is most interesting is that their advice typically goes against the “mainstream”. The mainstream would like you to think that successful investing is an extremely complicated matter that requires the understanding of complex mathematical formulas. However, this is NOT the way that Buffett made his billions.
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