Tuesday, November 16, 2010

Warren Buffet’s principles for successful investing

      1>      Rule:1 Never lose money
    Rule:2 Never forget rule 1    
2>     Never be afraid to ask for too much when selling or offer too little when buying.
3>     Look for business in which you think you can predict what they are going to look like in
10 to 15 years time. Take Wrigley’s chewing gum. I don’t think internet is going to change
How people chew gum.
4>     “If calculus or algebra were required to be a great investor, I’d have to go back to delivering newspaper”. All you need is addition, subtraction, multiplication, division and some little knowledge of percentage and probability. Anything more is a waste and anything less, you can’t play the game.
5>     You want to learn from experience, but you want to learn from other’s experience when you can.
6>     It is hard to teach a young dog, old tricks. All that matters here is age and experience. Youth and enthusiasm has no value.
7>     Wall street makes its money on activity. You make your money on inactivity.
8>     “You only have to do a very few things right in your life. So long as you don’t do too many things wrong”
9>     Fearful when others are greedy. Greedy when others are fearful.
       10>   The most important thing to do if you are in a hole is stop digging.

No comments:

Post a Comment