The warren Buffet way (last chapter)

20. WHEN OTHER PEOPLE AFRAID BE GREEDY, AND WHEN OTHER PEOPLE GREEDY BE SCARED
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.

21. READ, READ AGAIN AND Think
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.

22. USE OF YOUR whole ALL YOUR POWER THAT YOU HAVE
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.

23. Avoid ERROR OF THE OTHER PEOPLE
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.

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The Warren Buffet Way {Part 5 of 6 Parts}

17. Stay in your Competency
When should choose to invest, what the business is?? Waren Buffett is guided by what he called "Circle Competence", where the circle of competence only consist of industry stock, where he feels comfortable to be involved.
Buffett does not invest in the stock high-technology shares. Why? because the stock-share interest is located outside his competence.
According to him, "Develop a regional expertise, do operation in the area, and do not blame yourself for losing the opportunity to appear outside the region." Since 1982, Buffet to include a list of "business interest", such as:
- Capitalization of the market
- Businesses that show a consistent ability to generate income in
- Business of the ROE is good, with the Debt Equity Ratio is low
- Business with strong management
- Business is simple, not hi tech
- Share price is good and interesting

18. Ignore stock market prediction
Buffett said that, the short forecast period on a stock price or bond is not useful. Prediction that it gives you more information about fortuneteller prediction, and not the information future.
Buffett prefers focus on business performance, and not disrupted by a larger trend that does not believe, he might be predicted accurately. According to him, the forecast is only a dim assessment. Why? Due in part to create the illusion prediction accuracy, because it seems to be based on the data.
Bufett advice here is:
- Eliminate any involvement in the prognosis of your investment decisions
- Divert the time you will used to listen prediction with analyzing the track record of business.
- Develop investment strategies that are not on the whole movement that have relation with market.
- The flare of a stock market, the more likely people take advantage of the forecast, but at that time have also forecast a small chance for the right.

19. UNDERSTANDING MR.MARKET & MARGIN OF SAFETY
Mr. Market is something that many in the role and dominate the world shares. He is a psychological problem that affects the price he set.

If he is happy, it only see things in a good course of business and set a high price on the value of, and he felt afraid that his stocks with your purchase price is too cheap. Here he hold share-holding to its price and hope the price continues to rise (if the price suddenly even his fall, he will get drunk ...).
Conversely, if he is sad, he did not see anything except the business in distress, in this time he set up the cheap price stock and hope you buy it.
Mr.Market That is, he will come every day exchanges. Therefore, according to Buffet Aka Mr.Market should know the situation at the time, and DO NOT ONCE TIME WORK UNDER INFLUENCE. Badly all people can be infectious and can be intoxicating over gladness. This is the cause panic selling and panic buying.
After Mr.Market understand, you must also enter a margin of safety in the framework of your thinking. Margin of Safety is the condition of stock prices that are substantially lower than the value of the business. When assessing margin of safety, use the concept of intrinsic value as a starting point. Namely the measurement of the values that are really valid, to determine the real value of a stock price.

20. WHILE OTHER PEOPLE AFRAID BE GREEDY, AND WHEN OTHER PEOPLE GREEDY BE SCARED
This is advice from Buffett's. He often utilize emotions that spread easily with this act contrary to the sentiment that is growing. 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-his stock because of fear, Dow Jones index fall below 700, Buffett, of course, another act. He did a large-scale investment, with the share buy-it shares with the cheap price.
But we also know, how Buffet is a 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 many bankruptcy.

Continue to 6th edition ... ....

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The Waren Buffet WAY (Part 4 of 6 Parts)

13. FOCUSED on SMALL Things, not BIG Things

Buffet said that Big things outside business is not important, but small things that have chain reaction with business is the most important. To invest like Buffet, you have to ignore the events of the macro and focus on companies that its stocks you select. Events of macro like unemployment, economic growth, inflation, and political events appear very important for investors. You have to closed your ear from outsider, do not hear any rumors or about economic condition.

14. Watch carefully The Manegement

Who control The Company? Six factor to watch are:

1. Whether the management team is always working for the shareholders? Or enrich Their self with the cost of the company. For example, with the excess of salary, bonus or other luxurious facilities.
2. Whether management sparingly, or as extravagant excess burden?
3. Whether management is dedicated to increase shareholder value?
4. Are management stock purchase back (buy back) for the interests of shareholders, also avoid issuing new shares which will reduce the share of ownership of the shareholders
5. Does the company report does not contain fair and cheating? Or financial engineering.
6. Is management accounting system using a seemingly honest and not hide the correct information?

Investors need to suspect that the company projected SWEET long-term, sweet-like, projection of growth or profit projections.

15. THE KING NEVER WEARS SUIT IN STOCK MARKET

Do not hear any analysis from internet or website. Not technical analysis or Fundamental analysis. Do not used Robot trading or something else. The King never wears suit in stock market like volume, graph, technical analysis or fundamental analysis. JUST FOCUSED ON THE VALUE OF BUSINESS!!!

16. Think THE INDEPENDENT
Independent thinking is one of the biggest strengths that Buffett had. He said that "You are not right or wrong because people agree or not with you. You are right because the facts and reasons that you have is correct. "

This examplizeing in a few years ago, Internet stocks and high tech fly like meteoric, it defeated The fortune 500 who have long standing in stock market. Everyone buy that stocks but Buffet do not buy that. Investors that buy Hi-Tech and Internet stocks enjoy outstanding profit, and they said that Buffet is STUPID, because He did not buy any sheet like that kinds of company. He did not understand the way the Internet company's business. Therefore He stay away from it.

This was in the end when the Nasdaq index to fall 75% due to fell like high-tech stocks, and hundreds of billion Dollar was evaporate. Lessons that can be drawn here is Buffett on facts and reason in making DECISION investment. So do not make DECISION as it is popular or because of fear of the opposite flow.

Continue to 5th edition ... ....

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SUCCESS INVEST WITH BUFFET (Part 3 of 6 parts)

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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SUCCESS INVEST WITH BUFFET (Part 2 of 6 parts)

Made By Waren Buffet
5. BUY BUSINESS, NOT STOCK OR SHARE
According to Buffett, one of the important factors in successfully investing is to warn yourself that you are buying at least part of the business actually exists. Sheet stock itself does not have actual meaning. The stock is just representation of the company.

MUST think that when you buy shares of a company not graphic technical analysis, news and Bloomberg table or graph in the Wall Street. All you have to think about is the "value" and Performance behind a business.

Buffett always consider 4 things before deciding to buy the stock, namely:
1 Business that he can understand
2. Companies with long-term prospects of profitable
3. Management is honest and competent
4. Price (stock) is very interesting
Buying shares is part of the business. Therefore, do not buy stocks because the price movements, and do the fundamental analysis before buying any stock.

6. Look COMPANY THAT THE BEST FROM THE OTHER INDUSTRIES
Waren always want to find and buy the business that imperishable, which dominates the market, thus ensuring more success, where these products; required many people, does not require excessive capital, not a lot of similar goods, and not much affected by price regulation. But of course all of them executed while waiting until the company's stock price is considered reasonable.

It is recommended that you create a list of stocks, shares your drill, and do the monitoring costs as often as possible, until the price reaches the price that you consider good and reasonable, and .... HAP ..!!! The WOLF gets MEAT.

7. BUY LOW TECHNOLOGY COMPANY, NOT high
Waren hates is High technology companies and high internet company, because technology changes more rapidly create This kind of company is move behind the era and behind competitors, can cause FALL.

He prefers shares of companies bricks, paint company, carpet and furniture company that has a business that is easy to understand and cash flow that is easily predicted. Such companies can survive up to 100 years, because the product can be a lag period is not easy.

Fall of many dotcom companies, such as Etoys.com, Pets.com, RX.Com, etc. strengthen World.com Alibi Waren. What do you with Microsoft, Yahoo and Google?

Buffett advice: do not be tempted with a transaction that offers a wealth quickly, the company that involve complex relative (EXAMPLE High Tecnology Company), such companies are difficult to predict in the long term. Avoid business in the industry, which continues to change, and makes investment on business That live for many generation "old economy". And last, remember that takes tens of years for companies to become large.

8. CONCENTRATION YOUR STOCKS INVESTMENT
Almost all the experts recommend to do diversification, that is has a lot of STOCKS from many companies, that if a stock falls, it will not destroy all portfolio you have, but Buffett holds another.
If you've found the right stock, why you should buy a little? So he said. Buy 5 to 10 stocks with a good price, and buy as much as you can. Here he gives an example when buying a $ 144 million to shareholders China Petro-China oil companies. Unexpectedly, now worth $ 1.2 billion.

According to him, someone is invested in the property all the 3 companies that either (with the purchase price of the good), in the long term, then he can be rich future. This is also examplizeing by Buffett, He has 474,998 shares of the company, which Berhshire Hathaway holds for tens of years. Now one sheet of stock the price is $ 138,000. Please count the property itself from only one company. That is why Waren Buffett now the richest person in the world.
Continue to the edition 3 ... ....

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SUCCESS INVEST WITH BUFFET (Part 1 of 6 parts)

Made By Waren Buffet

1. CHOSEE SIMPLE THAN COMPLEXITY
Many people believe that investing in capital market is complex, mysterious and full of risk, so they only smart and clever person able to do it. Often they are so dependent on the formula-complex mathematical formulas, a sophisticated computer program, graphics and technical analysis is difficult. Warren Buffet has shown that all the things that are just myths.
The principle in choosing a stock is very simple, choose the stocks of companies with solid business, easy to understand, has survived long and profitable. He never invest in a business that he does not understand. For example hitech or dotcom companies, he will avoid that. Principally, Looks for a good fundamental Company, managed by a team of solid and honest persons, and the price below the price should be.

2. DECIDE YOUR OWN INVESTMENT
Waren believes that each person can be successful without the help broker to invest, capital market specialists and so on. The reason, experts, professionals or investors want to invest the presumption that the capital market is too complicated for most people, because this means good business for them. How many of us take someone who entrust pension or savings to shrink much trouble to be trusted broker or investment manager of the deal on the number of shares to pursue a commission?
Just needed a little knowledge of accounting and financial markets to be able to find a stock in terms Buffett "find money sheet Dollar which sold for 40 cents." This means that each person will need to focus on the investment value, without having to depend on other people. Start by reading the many journals and magazines in the financial reports or newspaper.

3. HOLD YOUR EMOTION
What will you do when the company that you hold its stocks are in a bad position? Due to changes in government regulations, for example. Try to see the stock TLKM or ISAT that can represent this situation.
In newspaper written recommendation "sell" or avoid this stock first.
Reactions and your response to these developments represent a very large role in determining the success of your investment.
The wise investor will remain calm in the face of events negative.
Buffett is not the same in the Washington Post have, when the U.S. recession of 1960, through the war, until finally now shares Wasington Post has increased the price thousand percent of the price where he start to buy.
His advice is to buy shares and hold stock from Great Company, and hold for many years. Close the ears of news, analysis and negative rumors about this stock.

4. BE PATIENCE
Think for 10 years and not for 10 minutes to the front. Buffett suggestion, if you're not ready to hold a stock for a decade, it is better never to buy these shares. Think and dream, if you buy stocks, and the next day exchanges will close for five years.
Please note that some of the market is completely antagonistic to the people who love to go out, and quite friendly to those who buy and maintain. This is due to go out, in addition will increase transaction costs such as broker fees and VAT, and they often lose the moment when the stock prices rose a massive, due to money stuck, because it is hurried to buy stock and the value get smaller because of many Cut Loss.

Continue to the edition to-2 ... ....

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