warren buffett strategies for successful investing

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warren buffett 's secrets of investing


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Warren Buffett’s 10 Key strategies for successful investing InvestorZclub http://investorzclub.blogspot.com:

Warren Buffett’s 10 Key strategies for successful investing InvestorZclub http://investorzclub.blogspot.com

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1. Choose simplicity over complexity When investing, keep it simple. Do what is easy and obvious, advises buffett; don't try to develop complicated answers to complicated questions. It must be remembered that degree of complexity does not count in investing. one should look for long lasting companies with predictable business models Warren Buffet says, if you don't understand a business, don't buy it. InvestorZclub

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2. Make your own decisions Buffett says that one shouldn't listen to the analysts, brokers or pundits and must select his own set of stocks. InvestorZclub

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3. Maintain proper temperament Let other people overreact to the market, buffett advises. Become bullish when others are in panic. Don't own any stock that would cause you to panic and dump your shares if the price falls by 50 percent. InvestorZclub

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4. Ignore Price, focus on fundamentals Buffett advises not to dwell on the price of the stock. Instead study the underlying business, its earning capacity, its future and invest for the long term. Do not dart in and out of the market. Research shows that frequent trading leads to mounting losses. InvestorZclub

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5. Practice inactivity, not hyperactivity There are times when doing nothing is a sign of investing brilliance. Buffett advises when in doubt, be lethargic. Better to practice your snoring than to spin your wheels and incur costs. InvestorZclub

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6. View market downturn as opportunity Buffett says market downturns aren't body blows; they are buying opportunities. If the herd starts running away from a good stock, get ready to run towards it. Search for quality businesses that go "on sale" for reasons other than underlying fundamentals of the business or the quality of its management. InvestorZclub

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7. Ignore Macro, focus on Micro Don't pretend to be an economist if you are not one. Your job as an investor is not to analyze all the numbers being reported by the government. As a rule you should not let your investment decisions be influenced by macro economic factors and political events. InvestorZclub

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8. Take a close look at Management For Buffett, the analysis begins and sometimes ends with one key question: Who is in charge here? Warren buffett advises that if managment stresses the appearances of performance over the substance of performance, keep your wallet in your pocket. InvestorZclub

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9. Practice Independent thinking Gather your facts, sit down and think, advises buffett. There is no substitute. InvestorZclub

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10. Ignore Stock Market forecasts Short term forecasts of stocks are use less, says Warren Buffett. They tell you more about the forecaster than they tell you about the future. InvestorZclub

More on Warren Buffett @ InvestorZclub http://investorzclub.blogspot.com:

More on Warren Buffett @ InvestorZclub http://investorzclub.blogspot.com