Made By Waren Buffet
9. APPLY NOT ACTIVE THEN VERY ACTIVE
Many of the financial institutions and mutual funds that act without control, to change their portfolio every day. If the Senior Investment Manager understand a variety of fundamental and technical analysis can participate contagious virus trading stocks, how about us?
Buffett said, "Not Active behavior that is intelligent." Because, according to him, investors can make money sincere, even though he was sleeping.
This has been proven with hold Coca Cola shares since 1994, American Express since 1998, and Washington Post since 1973, WITHOUT TRADE IT MORE. THAT’S Really a pattern that NOT favored BY TRADER.
He had a pad that trading can often be too difficult to control EMOTION, as well as the incidence of trading costs that we do not know, such as fees to buy, sell fees, taxes, etc. .. etc., which reduces our profits.
10. DO NOT SEE EVERY MINUTES
Normal People always do "breakfast" with monitors the latest stock price regional exchanges, an hour before the exchange began. When the trading day begins, each 5 - 10 minutes, surely the eyes to see the computer to monitor price movements their shares.
Whether this is also done by Waren? The answer is NO. So how to monitor his share price? He never do so. Computer more used to playing Bridge than to monitor the price of the shares.
According to him, we do not need to know stock prices for the short term if we have chosen the right company. If we have a share in a great business, the short term not too important. What if the shares price never watched, suddenly crashed caused by the storm exchange recession? Easy. That is a good time to buy again, because it costs so much cheaper.
According to him, from the time you spent the movement of stock prices that make your heart works to hard ”DAG DUG DAG DUG”, better you focus on the performance of the company business, which includes management, cash flow, income etc..
Waren Buffett did not know the selling price of his shares now or the selling price tomorrow. He was only concerned about the selling price of a decade, that the future will reflect the value of pure business.
11. LOOKS THE DOWN PRICE AS OPPORTUNITY
This is the time Buffett see opportunity to buy shares-stock company with a good price. Remember, even though the stock is fundamentally good, but the bullish or bearish energy is contagious, so without understanding the situation indeed, each and every race and panic selling shares.
Shares Wahington Post, Geico and Wells Fargo Bank is an example of how the old strike Buffet opportunity. In the year 1973, Washington Post shares down to $ 6 per sheet, Buffet use the opportunity to sink money worth $ 10.6 million. Now, more than 30 years later, the price has become a $ 900 per sheet, if there is any stock split, the number of Buffett shares surely doubled.
Remember Buffett said, "be afraid when other people greedy, and be greedy when other people afraid.".
12. DO NOT HIT EVERY BALL THAT CAME
According to their claim that they were experts in the stock market, to become a successful investor, it means a lot in the decision to invest. Buffett does not agree with this opinion. He said, though only once in a year, making good investment decision that's enough.
He analogized like play baseball, where three times the opportunity to hit the ball, hit the BALL with every strength, if the momentum and the directions exactly right, the term referred to in the sweet spot.
Buffett just looked every ball throws , but only hit the ball which moved into the sweet spot.
Sweet spot here is a great business with a future that is also great, which is run by competent management, and sold at a good price. And to get this sweet spot, although the buffet will be waiting for many years before making the investment. When there are stocks enter good criteria, he will swing his club, and he will do so with a vengeance, he invest a lot of money here, and the results .... Grand Slam!
Continue to the 4th edition ... ....
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