Friday, 21 December 2012

Warren Buffett on how to obtain superior profits from stocks.

     An investor cannot obtain superior profits from stocks by simply committing to a specific investment category or style.  He can earn them only by carefully evaluating facts and continuously exercising discipline. 

     Common stocks are the most fun.  When conditions are right that is, when companies with good economics and good management sell well below intrinsic business value - stocks sometimes provide grand-slam home runs.  

  • We often find no equities that come close to meeting our tests.  
  • We do not predict markets, we think of the business.  
  • We have no idea - and never have had - whether the market is going to go up, down, or sideways in the near- or intermediate term future.

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