How does one become an effective stock investor? Well, there are a couple of different methods but the main one is risk analysis. Every part of being a good investment professional is assessing the risk and then making a decision that will potentially either make you a profit or end up losing the initial investment. There has been a recent rash of new investors to the market as the economy is on an upturn and many investors look to Warren Buffett for guidance and direction. Warren Buffett is far more than just one of the richest men on the earth, he is also the best stock investor to ever step foot on the market and he has the track record to prove it.
The Warren Buffett signature analysis is his method for deciding whether to invest in a company or not. When Warren Buffett makes an investment he looks at far more than the current stock price and the 52-week high, he will go back ten plus years and see how the company has done historically. This was evident in 1988 when Warren Buffett made a $1 Billion bet on the Coca-Cola company, which to this date has not made Warren Buffett a loss yet and the company continues to power into the future. The Warren Buffett Signature Analysis system is an excellent way to minimize risk, and as the Oracle of Omaha has said over and over again if you don’t plan to hold onto a stock for at least ten years there is no point in purchasing it at all.
This system is just one of the many ways on top of his intuition that Warren Buffett continues to make a killing in the market. His stock choices are legendary, and by following the Warren Buffett methods correctly you can grow your money the right way.