The Warren Buffett’s ground rules PDF is comprised of a few main ideas. The whole General principle behind Warren Buffett investing strategy revolves around buying low and selling high. This is the pillar and staple of all truly good investing, and Warren Buffett is no exception to the rule.
The ground rules for investing include waiting until things come on sale, never investing too much of your money into one particular company, and more than anything having the patience to wait until good opportunities come. Warren Buffett once said that he would rather bat a thousand pitches and hit singles, then to swing for the fences every time for a home run and strike out a bunch.
One of the other ground rules for the Warren Buffett investment strategy is to know your investment. For example, Warren once bought Coca-Cola because he knows it very well and he loves drinking Coca-Cola. In fact, he has a diet Coca-Cola every day. Another example would be American oil company, Phillips 66. Their business model is simple: they produce and sell oil. Another more popular example would be Apple electronics; Apple makes technological products and sales digital services, and it is a globally recognized brand that is very safe to invest in.
In terms of patience, the best example would be that when the housing market and junk bonds being sold cause the markets to tumble in 2008, Warren Buffett was right there waiting in cash when everything went on sale and then he and many other investors bought up all the companies at a discounted rate. This just goes to show how understanding value can truly make you a lot of money. Just because a company is currently trading under what it is worth, it does not mean that the value of the company has changed, it only means that the company was priced wrong and that you have an opportunity to invest. These are the ground rules for success, according to Warren Buffett.