Saturday, January 22, 2011

Buffett's investment strategy of the concept of 11 items

Buffett through enterprise operating results and business communication, rather than through short-term fluctuations in the stock market. His investment strategy is to identify the real value of the enterprise after patient. In simple terms, Buffett investment stock method is to put yourself as a business owner, not a speculative stock market players.

Many people know that Buffett's thinking: 「introduction price depression is the most common reason for pessimism at Bay – sometimes was diffuse everywhere, sometimes at a company or an industry. We like to buy in this time, the reason is not that we like this kind of pessimism, but we like the mood of the price. Optimism is the enemy of rational investors. 」

When Buffett found his understanding and feel at ease, his investment approach is like an entrepreneur General instead of stock market speculators. He will try to study the business of every transaction, and become experts in that field, and in cooperation with management, never and confrontational tactics. In fact, no matter what company to buy stock, Buffett do first is often the Attorney for the shareholders to vote given to managers, so that they can rest assured that he has no intention of changing the company's core values and existing practices.

We all know, Buffett has always advocated the value investment strategy that will not be subject to price fluctuations in daily, the impact of the overall economic environment, or any other external factors. He has always taken a long-term perspective, never cong depending on a company's fundamental values. Buffett's investment strategy mainly have the following basic ideas: 11 points

◎ The concept of a

Invest in a stock and try to predict the market's direction, the two are completely different. Although the technology is developed, securities market remains the creation of the people. Investor sentiment on the market of short-term orientation and stable high-impact, but the stock of long-term value, and finally completely depends on the company's business processes, rather than by market fluctuations to decide every day.

◎ Concept II

In the daily stock market investors inevitably receive 「introduction market Mr. 」. His mood fluctuations have a direct impact on the level of stock prices. This is like you and 「introduction market Mr. 」 partner opened a small business. Every day, all 「introduction market Mr. 」 give you a price, said he was willing to buy you half of the shares, or his half of the shares sold to you. Your enterprise's good, business. 「Cold market Mr. 」 According to their own mood swings, daily quoted price high to low, the difference is very big. In his joy when offer is very high; experiencing everything not pessimistic mood, he also reported a very low price.

If you and 「introduction market Mr. 」 partnership doing business, your mood, but followed the downs, such as coaster. In fact, you should rely is 「introduction market Mr. 」 pocket money, instead of his wisdom. If you are affected by the impact, ultimately he is his own bad luck.

You should use your own good judgment, for 「introduction Mr. market 」 every day in the market stimulate emotional whirlwind.

◎ Concept 3

In response to daily market fluctuations, investors have good financial and psychological well prepared, unless you can face stock value shrink 50 percent also batting an eye, or else face fluctuating time you very hard to succeed.

◎ Concept IV

The prices of the stock or enterprise is definitely a good thing, because you have the opportunity to bargain is better. As long as you invest in business is good, basic operating environment, management team, the price is good, the market will give a successful enterprise high reward.

◎ Concepts 5

Stock market investors a great advantage is that, unless all the facts in your favor, or you can always say "no".

Buffett never buy rumour daily sell corporate stock, he values is to buy a few management excellent long-term stock outstanding enterprise and hold tight. He patiently waiting until the very good investment opportunities surfacing before they start.

◎ Concept 6

Investment success does not mean that never makes mistakes, in fact it is a success, do the right thing than do the wrong thing. To do this, you must reduce the possibility of making mistakes, and concentrate on the opportunity to do the right thing.

◎ Concept VII

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