Warren Buffett Investment Rules PDF

Warren Buffett’s top holdings include Wells Fargo, Coca-Cola, IBM, American Express, Wal-Mart, Proctor and Gamble, and Exxon Mobile. His top holdings are called dividend growth stocks since these companies raise their dividend. Buying stock from a company means that the person who bought stock becomes a shareholder with the right to go to meetings where the board of directors is elected. The types of dividends are the following, cash, stock, and extraordinary. A dividend means that you make a profit off of something. A stock dividend or profit comes when investors are rewarded with whole or partial shares in the company for each share actually held on to.

Buffett’s top companies have held onto their stocks because of the increase in dividend payments for 25 or more consecutive years. Buffett is not a writer of books but rather annual letters to shareholders. Buffett ran an investment partnership from 1956-1970 before making sure Berkshire Hathaway became a $360 billion dollar corporation. Unpublished letters to shareholders from 1969-1976 do exist except for the 1970 Berkshire newsletter. These days you have access to shareholder letters from 1977 to the present. One of Buffett’s rules is not to time the market.

Another rule of Buffett’s is don’t be afraid to buy the dips. Financial media sells doom and gloom. Buffett’s wise counsel is not to listen to this negativity when you make decisions. Global events such as the Trump election lead to stock dips. Keeping it simple means that analysis reports do not have to be long-winded. Buffett states that many need to start investing young in order to make more money later on. Buffett also wants investors not to lose money, which will happen at times. Other Buffett rules include reinvesting profits as well as being able to be your own person.

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