The Winning Investment Habits of Warren Buffett

Discuss this post with us on InformedTrades here: http://www.informedtrades.com/643538-winning-investment-habits-warren-buffett.html#post703191 This video discusses some of the key points made in this book: http://amzn.to/SFotdl Specifically, there are a few key elements to Buffett's approach: 1. Be contrarian -- buy what is out of favor and sell what is popular 2. Value investing -- Buy companies trading at a discount to what you believe is their proper valuation. The more discounted it is, the safer the investment. When it reaches what you regard as its full valuation, or if the story changes and you have to revise your valuation downward, sell. Buffett tends to hold companies for a long-time. 3. Specialize -- Buffett focuses on owning a large percentage of companies and sectors he believes are undervalued rather than taking a broad, diversified approach. 4. Let Compound Interest Work In Your Favor -- Compound interest is the holy grail and results in parabolic gains, if investors are sufficiently patient and disciplined.

Comments

1. does compound interest only works in banks and stuff?...
2. It's not that hard to do a basic macro analysis. I've implemented his basic principles and have done very well during the downturn and I was unemployed!
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4. Wish I gave him $10,000 to manage at the start ; ) ====> Please check out my Warren Buffett videos too !! thanks all ; )
5. warren buffet is a mouse/scam/idiot/donkey and he work for bankers !!
6. yeah but if it's easier and accessible then everyone will get in on the method and it will be harder to turn a profit...better solution is to improve your valuation techniques and take advantage of the investors who don't have that knowledge..
7. It'd be nice if someone would create an indicator that indicates fundamental over/under valuation. It would be easier to value invest because some people like myself have a hard time determining intrinsic value. All of that number crunching can be frustrating and time consuming.