The 20 key followed by Warren Buffet make his fortune The genius of finance and the second richest man in the world appealed to a set of rules that allowed him to succeed from an operation of only U.S. $ 100. However, experts say that few businessmen who can implement them successfully.
Buffet is an investor who made his fortune buying and selling shares only and is today the most influential person in the U.S. financial market. This financial wizard bought his first share at age eleven, although he says he regrets having done "too late." At 14 he bought a small farm with the savings achieved delivering newspapers and still lives in the same three-bedroom house in Omaha that he bought 50 years ago when she married.
1. Never invest in a business that can not understand, and complicated technologies.
2. If you can not see dropped by 50% your investment without panic, do not invest in the stock market.
3. Do not attempt to predict the direction of the stock market, economy, interest rates or elections.
4. Buy companies with good track record of profits and market dominance.
5. Be fearful when others are greedy, and vice versa.
6. Optimism is the enemy of the rational buyer.
7. The ability to say "no" is a huge advantage for an investor.
8. Much success can be attributed to inaction. Most investors can not resist the temptation to buy and sell steadily, but the cornerstone should be the lethargy bordering on sloth.
9. Wild swings in prices are more related to the behavior of investors that business results.
10. An investor needs to do very few things well if you avoid big mistakes. No need to do something extraordinary to achieve excellent results.
11. Do not take seriously the annual results, but the average of four or five years.
12. Focus on return on investment (not in earnings per share), the level of debt and profit margins.
13. Be invested long term.
14. It is absurd that the council "never breaks a profit taking."
15. Always remember that the stock market is manic-depressive.
16. Buy a business, do not rent the shares.
17. Look for companies with large markets, strong brand and loyal customers, such as Gillette and Coca Cola.
18. Also interesting are some companies with established brands but are undervalued by temporary difficulties. To find these opportunities must be harnessed for bear markets.
19. Look for companies with high ability to generate cash and that, once started, do not require major reinvestment.
20. The more absurd is the behavior of the market, the better the opportunity for a methodical investor.
In the United States assert that all these rules, the most successful for Buffet was the "value investing": buying undervalued companies (But with a good track record, competitive advantages and brand names) and wait until they grow back their heritage.
Source: www.iprofesional.com
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