In my investment study, my favorite investors are Buffett, Lynch and Max, etc. I will also concentrate on and carefully read, practice and reflect on their books. Buffett’s books are large and small at home, and have been repeatedly read and practiced. Why do I always have the patience and confidence to hold my own portfolio, and most of them also come from the ideas and concepts of ” value investment”.
Today, I would like to share with you Buffett’s eight helpful investment guides.
First, the crisis is the time to make profits.
Crisis is inevitable, for enterprises and investors alike. When the crisis comes, many people adopt a conservative investment attitude almost instinctively, just like ostriches, plunging into the soil whenever there is a crisis. Little imagine, at this time if looked up to the distance, will find a greater chance.
We welcome the decline in the market because it enables us to buy more shares at new and frightening cheap prices. When some large enterprises are temporarily in crisis or the stock market is falling and there are profitable trading prices, they should not hesitate to buy their shares.
Second, investment should not be ” cheap”
Some so-called ” turnaround” enterprises have few successful cases in the end. Instead of spending time and energy on buying cheap and rotten enterprises, it is better to invest in some good quality enterprises at reasonable prices.
3. Concentrate on the best enterprises
If investors have strong ability, then the traditional diversified investment mode is meaningless. Because such investors have enough ability to accurately evaluate the company’s profitability and can find 5 – 10 companies with specific investment value. If you have 40 wives, then you will not know any of them.
Investors should definitely hold on to several promising stocks, instead of rushing in and out of a group of unhealthy stocks.
4. Adhere to the principle of long-term investment
If investors want to obtain lasting returns, they must adhere to the principle of long-term growth, avoid being influenced by the stock market and others in the process of investment, and have enough patience during the period, because only in this way can you obtain excellent return on investment.
I have been telling you all along that three years is the minimum time limit for measuring investment performance. However, the time limit for the public to measure investment performance is often on an annual, quarterly, monthly or even shorter basis.
Buffett’s latest 15 major holdings, many held by the year
V. unfamiliarity and lack of investment
I don’t invest in businesses that I don’t understand. I also don’t invest in businesses that are easy for competitors to enter.
The business I am looking for must conform to three points: ( 1 ) simple and easy to understand; ( 2 ) It is economically feasible; ( 3 ) Honest and competent management.
6. Investment is a kind of self – cultivation
The key to successful investment: common sense, discipline and patience. How much wealth you can accumulate in your whole life depends not on how much money you can earn, but on how you invest and manage money, how you find people with money, rather than how others find money. You should know that money works for you, not for money.
7. The market is always irrational, only value investment is more valuable.
Wall Street is a mixed bag of good and evil people selling things. Speculation is the easiest and most dangerous time to look at, when the gang must leave. If the market is always effective, I will only become a tramp carrying tin cans on the street.
8. Stock is not a piece of paper, but a certificate of ownership of an enterprise.
I hope you don’t think that the stock you own is just a proof that the price changes every day, and once an economic or political event makes you nervous, it will become the object of selling. On the contrary, I hope you can imagine yourself as one of the owners of the company. You are willing to invest in this company indefinitely, just like a business you run with your family.