Make Money Like Warren Buffett

Warren Buffett - How to Make Money Like Warren Buffett

Warren Buffett is probably the most successful investor in history. He has been called "The Oracle of Omaha" (hence the name of this site) or also the "Sage of Omaha" due to the fact that he lives in Omaha and he is a very savvy investor. He is currently the third richest person in the world, behind Carlos Slim and Bill Gates. Buffett studied under Benjamin Graham at Columbia University, who was a major influence on Buffett and his investment style, which is basically long-term buy and hold value investing i.e. you find a good company that makes a lot of money and that has few competitors and you buy stocks in it and hold on to them. The stock market goes up over time and re-investing your dividends in the company will allow you to benefit from the power of compound interest.

Warren Buffett is Chairman of Berkshire Hathaway, which used to be a textile company and which Buffett grew into a major corporation. Berkshire Hathaway's shares averaged a 21.4% compounded annual gain in per-share book value from 1965-2006.

Warren Buffett's value investing strategy is in fact an adaptation of Benjamin Graham's approach, based on discipline, patience and value. He also likes to be greedy when others are fearful, as he was back in October when he started buying stocks for the first time in years. So far his decision has proved to be a wise one. Buffett generally likes to buy stocks in acquire great companies that are trading at a discount to their intrinsic value, and then to hold on to hold them for a very long time, forever if possible, although he recently sold some shares in Kraft as he did not agre with their decision to buy Cadbury.

Five tips from Warren Buffett to his son Peter Buffett

• Follow our own path - not the herd
• Give your kids opportunities - not handouts
• Give to charity and get  a lot back (not money)
• Invest in potential
• Do what you love - don't settle for anything other than your passion

He also only invests in businesses that he understands, and always ensures that there is a margin of safety. Another of his famous quotes is that he likes to "shoot fish in a barrel, but only when the water has run out".
He has also said in the past that Berkshire likes to buy "businesses ... (a) that we can understand; (b) with favorable long-term prospects; (c) operated by honest and competent people; and (d) available at a very attractive price."

He has also said he advises people to "buy stocks in companies that any idiot can run, because sooner or later one will". Click here to see hich books on investing Warren Buffett recommends Warren Buffett Recommended Books click here to see Warren Buffett's current stock holdings.

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