Investing takes discipline, patience, and knowledge, but it is also important to apply common sense. The following are eight of Buffett's commonsense rules for investing:
Have a written or mental note of your investment plan and have the discipline to follow it.
Be flexible enough to change or evolve your investment strategies when sound judgment and conditions warrant change.
Study sales and earnings of a company and how they are derived.
Focus on your purchase candidate. Understand the firm's products or services, the company's position in its industry, and how it compares with the competition.
Learn as much as possible about the people managing the business.
When you find a great stock value, don't be swayed by predictions for the stock market or the economy.
Sit on the sidelines in a cash position if you can't find in vestments of value based on your criteria. Many emotional investors make the mistake of buying at very high prices relative to value.
Define what you don't know as well as what you do know and stick to what you know.
Additional Readings:
Additional Reports:
Off-Topic Readings:
Parting Thought:
Your post is breaking my website EquityBlogs.com. Probably you are copy pasting from MS Word which is creating problem. I would appreciate, you can use some other editor e.g. WordPad or notepad and do the formatting inside blogger itself. Due to the problem being created, I'll have to remove this blog temporarily from my aggregator.
Posted by
Punit Pandey |
7:13 PM