Warren Edward Buffett is an american
businessman and investor. He is called "Oracle of Omaha". He made
his first stock market deal at the age of 11. Buffett invests via
Berkshire Hathaway company. Buffett owns 38% of Berkshire
Hathaway. In 2009 Buffett had wealth of 37 billion dollars, and
he was the third richiest man in the world. Buffett is also known
for his frugal living style. He still lives in
Omaha´s suburbs in a modest house, which he bought in 1957. In his book
Lessons from the legends of Wall Street Nicki Ross lists the
fundaments of Buffett´s succe in the following way:
1. Make an investing plan and follow it.
2. Investigate, where the company gets it´s turnover and
profit.
3. Know the company´s products and services, it´s
position on the market and how it positions itself regards to
concurrents.
4. Know the company´s leadership.
5. When you find a good shopping chance, don´t let stock
market or economy to mix your head.
6. If you don´t find a good shopping chance, wait bravely
for a better chance.
7. Define what you know and what you don´t know and keep
yourself in what you know.
8. Invest only on good companies.
9. Avoid companies with much debt.
10. The company must make profit constantly over a lengthy period
of time.
11. The intrinsic value of the company must be at least 25%
higher than it´s market value.
Buffet´s citats:
1. If a business does well,
the stock eventually follows.
2. In the business world, the rearview mirror is always clearer
than the windshield.
3. It takes 20 years to build a reputation and five minutes to
ruin it. If you think about that, you'll do things
differently.
4. I am a huge bull on this country. We will not have a
double-dip recession at all. I see our businesses coming back
almost across the board.
5. It's better to hang out with people better than you. Pick out
associates whose behavior is better than yours and you'll drift
in that direction.
6. Only buy something that you'd be perfectly happy to hold if
the market shut down for 10 years.
7. Our favorite holding period is forever.
8. Price is what you pay. Value is what you get.
9. Time is the friend of the wonderful company, the enemy of the
mediocre.
10. You only have to do a very few things right in your life so
long as you don't do too many things wrong.
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