Warren Buffett Stock Basics

Warren Buffett Stock Basics
Warren Buffett only has 4 rules
1. A stock must be stable and understandable
2. A stock must have long term prospects
3. A stock must be managed by vigilant leaders.
4. A stock must be undervalued.

ALL 4 rules must be met before buying the company.


A quick valuation tool by Graham.
@ 13.00

Look for
P/E < 15 and P/BV < 1.5
or

P/E * P/BV < 22.5

Then this is a company you need to look at.


https://www.youtube.com/watch?v=_uQjGz6jp2E&list=PL8u0bnZsL5kmAFryBYc9YzLNIENnvLAJF