Your goal as an investor
April 3, 2007Thanks for visiting! If you like what you're reading, you may want to subscribe to my RSS feed.
Warren Buffett is possibly one of the most successful investors - ever, and with a personal net worth of roughly 30 billion dollars he is certainly among the world’s richest.
While one would expect complex technical analysis dominating his mind from the moment he wakes up in the morning, his investment philosophy boils down to something rather simple:
“Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards - so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.” (source)
That's great advice, from a man who knows what he's
Money Watch | July 16, 2007 | 8:47 pmThat’s great advice, from a man who knows what he’s talking about - unfortunately most people cannot think in the long-term like that, and a lot think that investing in shares is a way to get rich quick.
I agree... but at least knowing that even Buffet thinks
Kirsten | July 17, 2007 | 3:15 amI agree… but at least knowing that even Buffet thinks this way (and has made a fortune by doing so) should hopefully help to with the motivation to stick to what you believe in… as long as you’ve done the research beforehand!