Saturday, 12 November 2016

Warren Buffett: How the Average People Can Invest

  • Benjamin Graham distinguishes investors into Defensive or Aggressive Investors
  • If you are an active investor, look at as many things as possible
  • You will find some bargains within them.
  • When you find a bargain, you need to act.
  • Start turning pages.  Moody's 10,000 pages, twice!
  • You need to find these bargains yourself.  
  • The world is not going to tell you about a great deal.
  • This will take a bit of time.
  • Those unwilling or are passive investors, should invest in index funds consistently over time.
  • The worst investment in the world is cash.
  • Cash is going to be worth less overtime, unlike good businesses.
  • Good businesses are going to be worth more over time.
  • You do not want to pay too much for them, so you must maintain some discipline on how much you pay for them.
  • Find good businesses and stick with them.
  • Keep enough cash to feel comfortable and to sleep well; so no one can determine your future.
  • Cash is a bad investment over time.
  • Financial panic is behind us.  The economic pain is still with us.
  • It will end and won't go on forever.  It may end next month or next year.
  • It won't go on forever; don't try to pick the bottom.  
  • The bottom hasn't come in unemployment, in business but has come in stock.
  • Don't pass out on something you find attractive today because you hope to find something way more attractive tomorrow.

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