- Warren only invests in stuff that he understands.
- He doesn’t trade, he invests!
- His main decision making source are Annual Reports
- He only buys at a “good price”.
- He only buys things with the intention to hold them forever (no rule without exception).
- He holds 8% of Coca-Cola and is absolutely certain that the value of Coca-Cola will increase substantially over the next 20 years, i.e. there is no reason to sell.
- He only invests in simple business models (beverages, sweets, chewing gums, insurance). If he doesn’t understand the industry, he doesn’t invest. E.g. he doesn’t invest into technology/internet companies.
- He can make a purchase decision in 5 – 10 minutes. He doesn’t overanalyze companies. He doesn’t negotiate very much. When the price that is offered to him is okay, he buys immediately. When he offers a price, it’s often non-negotiable and he expects very fast decisions.
- He recommends not to listen to stock recommendation. If you do that, you’re playing and not investing.
- He still lives in the same house he bought as a 25 year old.
Wednesday, 27 March 2013
10 Points on Warren Buffett's Investing
I will definitely read and listen to more stuff of and about Warren! There are some very important lessons to learn!
Warren Buffett MBA-Talk