Warren Buffett Quotes

Warren Buffett is almost as famous for his quotes and one-liners as for his investing - see this selection of Warren Buffett Quotes on Life

Tuesday, 29 September 2009

Warren Buffett Investing for Beginners

Warren Buffett - Investing Advice for Beginners guest post by IB

Stock Market Investing for BeginnersThe investing mindset of Warren Buffett aka the Oracle of Omaha is something which has fascinated people over the years especially stock market beginners. The reason he is so successful in the stock market is perhaps because he thinks about investing differently from the rest of the population. It is well documented that Warren Buffett was a student of Ben Graham and follows his value investing techniques but that is not the only reason he is regarded as being an 'Oracle'. Below are three tips that both beginners and experts can follow which will give you a little insight into the mind of the greatest investor of all time, Warren Buffett.

Invest in Only a Handful of Companies
Warren Buffett is someone who does not invest in mutual funds as he believes that over diversification can be a bad thing. This goes for putting all your eggs in one basket too which is never a good idea. He prefers to make significant investments in only a handful of companies and if you have done the appropriate research there is absolutely nothing wrong with this approach. The goal should be to own a sizeable amount of stocks in only a few excellent companies. There is no point in diversifying purely for the sake of it. If you have stocks in one business in particular which offers the least financial risk and most favorable long term prospects there is no reason for you not to buy more stocks in this business.

Buying Stocks is Buying in to a Business
Don't think of stock as a piece of paper to be bought and sold. Think about it as if you're buying into a business. Getting yourself in to this mindset may stop you from becoming too emotional and making silly decisions because your stocks have dropped a few points. Buffett has always stated this as an important thing to consider as the investor will tend to focus on buying stocks for the long term. If you think of yourself as a joint owner in a business you're more likely to put more thought and analysis in to any given situation and this includes getting to the point when you're ready to sell. Buffett is renowned for buying stocks and holding them long term because this is the surest way of making money over the long term, he famously says that if you are not prepared to hold a share for ten years then you shouldn' t own it for ten minutes.

Don't Listen to Market Forecasts
Ignore the forecasts as to be honest it doesn't matter which stock is climbing a few points or decreasing a few points the next day. In the grand scheme of things you're looking for solid long term investments. TV and the Internet is full of this sort of information with some predicting the next great depression and others the next stock windfall. Warren Buffett always recommends focusing on stocks which are not valued by the market. The logic here is that when the market sorts itself out you will own stock which is worth much more than you bought it for.

The points made above may not be in line with stock market advice for beginners you will hear elsewhere, but it is advice given out by Warren Buffett.
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Sunday, 20 September 2009

Warren Buffett Video to MBA Students

Warren Buffett Video on Important Human Qualities and Branding

The Oracle of Omaha speaking to an audience of MBA students - he starts his lecture by pointing out which are the important human qualities to look for in future business leaders and the significance of branding - some interesting insights

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Warren Buffett Quotes