Thursday, March 02, 2006

24 Buffet Ideas to win 365 battles every year

1. Choose Simplicity over ComplexityWhen investing, keep it simple. Do what’s easy and obvious.If you don’t understand a business, don’t buy it.

2. Make Your Own Investment DecisionsDon’t listen to the brokers, the analysts, or the pundits. Figure it out for yourself.Become a value investor. It’s proven to be a very rewarding technique over the long term.

3. Maintain Proper TemperamentLet other people overreact to the market.To succeed in the market, you need only ordinary intelligence. But in addition, you need the kind of temperament to help you ride out the storms and stick to your long-term plans. If you can stay cool while those around you are panicking, you can surely prevail.

4. Be PatientThink 10 years, rather than 10 minutesDon’t dwell on the price of stocks. Instead, study the underlying business, its earnings capacity and its future. If the question is, “How long will you wait?” – “If we’re in the right place, we’ll wait indefinitely” says Buffet.

5. Buy Business, Not StocksOnce you get into the right business, you can let everyone else worry about the stock market........

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All the best,
Dah Hui Lau (David)

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