WB Trading Method

The Warren Buffett trading method is quite simple. The main idea behind his investment strategy is to just wait until stocks become available at a good price. The stock market goes up and down and there are always opportunities to buy at a low price that is undervalued to the true value of the actual company. So all that one does is essentially wait for downturns in the market before he or she is able to buy. One of the best examples of this was during the 2007 to 2008 financial crisis in America. During this time where the markets fell due to overvalued Bonds in the housing market, Warren Buffett was able to come in at a low price and buy companies that were on sale for what the true value of the company was as the old saying goes, “Buy Low and Sell High”. Sure, there are other factors involved in how he makes his investment decisions, but in large part, other than knowing the company and being familiar with them, Warren likes to simply buy low and hold for a long time and then sell when the markets are very high.

One of the best examples of stocks that Warren Buffett has purchased in the Warren Buffett trading method is Coca-Cola. Coca-Cola, with the symbol ticker KO, is a company that Warren knows much about due to its simplistic nature. So Warren was able to buy Coca-Cola and companies like it at very low prices under $50 per share for example, and now many of them have reached a value that has surpassed well over $50, or has split or given dividends.

Leave a Reply

Your email address will not be published. Required fields are marked *