Warren Buffett’s 10 Key strategies for successful investing
Warren Buffet well-known investment broker and philanthropist has put together a powerpoint presentation about his investments strategies.
Buffet advises investors to keep it simple. Do what comes easy. If it is too hard for you or you do not understand what you are doing then do not do it. When it comes to investing you want business models that are predictable.
You should also make your own decisions. Do not be swayed by an analyst or broker. Your investment style may be different than anyone else. You should select the companies that you wish to invest in.
Keep an even temperament. Do not overreact to the market leave that for other people. Do not panic and dump your stocks. If you think that you would dump the stock then do not buy it. Only buy the stock that you will hang in with.
Do not dwell on the price. Research the underlying company and its future as well as its capacity for earnings. Invest in the future.
If the stock leaves you in doubt just keep waiting. It is better to be inactive than it is to be hyperactive. Just because a market down, do not let it keep you from buying. Look for companies that have quality management it could mean that you have a chance to make some money when the stock starts rising again.
Another rule of thumb, do not pretend to be an economist is you are not one. Your purchase of stocks should not be influenced by macroeconomic factors nor political events.
The analysis of a company starts and ends with the same question. It is “who is in charge here?” You should gather all of your information, sit down and do your own thinking.
One last fact from Warren Buffet’s powerpoint presentation is to ignore the stock market forecasts. The forecast tells you more about the forecaster than about the future.