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Monday, April 6, 2009

The warren Buffet way (last chapter)

The Famous Words is advice from Buffett's. It was often easy to exploit emotions that spread with variance act with growing sentiment from market. With this strategy, he produces a lot of money when other people do not succeed. In early 1970, there was a decrease in the market that is famous. People crowded sell their stocks for fear, Dow Jones Index down below 700, Buffett, of course, He did a large-scale investment, with the share buy-it shares with the cheap price.
But we also know, how Buffet become very coward during the Internet stock prices soaring when people buy it with greed. But he does not lose money when a continental ultimately destroyed the internet stock prices, which caused bankruptcy people.
He said, be prepared for do quickly when opportunities appear. At this time, he liken himself; hyper sex male bordello in the house when in 1971, Dow Jones index to penetrate the lowest limit at 580.

Warren Buffet about the time spent around six hours to read, one to two hours to call and the rest he used to think. (At the time for "it" is ...?)
He read the Financial Times, Wall Street Journal, New York Times, Fortune magazine and so the read to get general knowledge. However, he focuses on some of the companies that moving in his brain. And he will start looking for complete info-lengkapny about a company and the industry associated with it.
In particular, Financial Reports. He always read it regularly. If he want a company, he will also buy some shares in the company for a competitor which learn its financial reports. With reading, will give him the facts and ideas into the minds of fuel in his independent investment.

How much energy "engine" you? And how efficiently you run the machine?
According to Mr Buffett, many of us who actually have the ability to 400 horse power, but only issued a 100 horse power only. In other words, many intelligent people who often leave their vision distracted from the task they are doing and act in a way that illegal or crazy.
His suggestion , to become a better human being, try writing the list begins with the quality of people you admire, and also a list of the quality of the person who is not you admire. Then compare the two, and look for certain patterns therein. Then start to adopt the qualities of the person you admire before, be implemented in your life. Where, when this is done continuously, it can become your habits. If you do this again, your behavior will change. Develop your positive habits, and remove a bad habit.

Here are some question that you may often ask yourself, to ensure that you do not bring bad habits to invest in;
1. Do you make enough observations before deciding to buy a company stock?
2. Do you only check your stock prices periodic and avoid "noise" of daily "people" who usually say nothing?
3. Do you always avoid tips on a stock, of any origin?
4. Do you avoid the "Crowd" and make their own investment decisions?
5. Would you show patience with the wait for a company value ?
6. Do you avoid investing in companies that do not you understand?
7. Do you act when people fear and sell on the greed of others?
8. Do you apply the rules Mark and Margin of Safety?
9. Consistent if you read the various magazines and newspapers?

If you answer Yes to a minimum of 7, then you are a sincere pursuit Mr Buffett, and you are in the correct path in investing.

It is important to learn the other people's mistakes, so you did not do the same mistake.
The most important lesson here is the understanding of the importance of a reliable investment, solid understanding of investment fundamentals, will give protection to you to repel temptations-temptations of bad investment scheme.
There is some good advice here:
- If there is too grandiose, it is usually impossible happen
- Follow poses involved in your investment decisions
- Always look at the cost - the cost incurred.

24. Be a reliable INVESTOR
Did you, for investing in the stock will not make you poor. Provided that the Investment is reliable.
Buffett with ropes have shown The Good path. With the words and his comment, amateur investors can achieve great results without professional help.
Sort Try our principle; he still likes to maintain everything simple, and avoid anything that complex. He will only invest in things that he understood, and only invest in the stock-stock company in interest circle.
He is very disciplined, and only act when a vengeance at the right price point. He avoid, and comfortable enough to make investment decisions only 20 during his life. Sometimes play in the stock, stand by any action is best, and this is part of a game.
Buffett-style investing is not a pattern rich quick. But to be rich slowly. Remember, the time required for seed to grow into a large tree.