Warren Edward Buffett, an American businessman, investor, and philanthropist, was born on August 30, 1930 in Omaha, Nebraska. He is now the co-founder, chairman, and CEO of Berkshire Hathaway. Buffet interest in the stock market came early, his father was a stock broker until he elected to the United States congress. If you want to emulate Mr Buffett’s investment strategy, we will be going to discuss his few key investing tips.
Always look for business not for stock price-
Mr Buffet once said that while choosing for investment he always tries to understand the business rather than looking for the price of the specific stock.
Long-term investing goal-
According to Mr Buffet, long-term investing is essential for reaping the benefits of compounding. The principle of compounding ensures that if you stay invested for an extended period of time, you will undoubtedly profit from your investment. He once said “Time is the friend of the wonderful company and, the enemy of the mediocre”.
Principle of Value Investing-
He always gave importance to the concept of value investing i.e. finding companies that are undervalued. He bought 1.7 million shares of Washington post company today it worth 370 million dollars.
Temperament matters not intellect-
According to Mr Buffet, the investor’s temperament is more significant than intellect or IQ. He also emphasises the need of having a disposition
that does not take pleasure in being with or against the masses.
Trust your research and analysis-
Never go with the crowd or against the crowd. Always avoid herd mentality. He quotes “You are not right or wrong because thousand people agree with you or you are not right or wrong because thousand people disagree with you.
You are right because your facts in your reasoning are right.”