Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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Tuesday, 9 April 2013
Warren Buffett - 4 Steps to Picking a Stock
1. You have to deal in things that you are capable of understanding.
2. Then once you're over that filter, you need to have a business with some intrinsic characteristics that give it a durable competitive advantage.
3. Then you should vastly prefer management in place with a lot of integrity and talent.
4. Finally, no matter how wonderful it is, it's not worth an infinite price, so you have to have a price that makes sense and gives a margin of safety considering the natural vicissitudes of life.
It's a very simple set of ideas. The reason that these ideas have not spread faster is they're too simple.
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