If only there was a way to pick a stock that would yield the best percentage for a potential investor whose looking to diversify his or her portfolio? Look no further than to Warren Buffett. If you do not who Warren Buffett is then taking a moment to do a quick search of the man. You may be asking how did he manage to acquire all of that wealth? By picking the winners.
Warren Buffett operates his investment strategy based on four principals
Principle No. 1
His Philosophy is founded on being street smart. Such as looking for a long-term investment that is financially sound is valued at a low price a buy and hold mentality and understands the power of compounding.
Principal No. 2
He knows the power of information so he meticulously analyzes any and all potential investments including value future earnings using a return on equity for growth and selecting stocks that will be stable.
Principal No. 3
At all cost, he avoids situations that will put him at a loss. To do this he allocates a part of his portfolio to investments that guarantee a fixed return.
Principal No. 4
When it comes to a good investment strategy always in all ways obey and follow the rules. Such as following and committing to your own advice do not over think and over analyze searching for companies that are franchises ignore the volatility of the markets and never allow the price dictate your decision.
Living by these four principals Warren Buffett has managed to amass a massive amount of wealth for himself.