Antonio Rivela

These are the 24th simple investing strategies from the world´s greatest investor: Warren Buffet.
I thought it was useful to remember them in the middle of this securities crisis...
They are summarized from the book written by James Pardoe.

One again, it is a pity that he hates fixed income securities, but it is what it is...

Here we go:

1. Choose simplicity over complexity
2. Make your own investment decisions
3. Maintain proper temperament
4. Be patient
5. Buy businesses, not stocks (Cash Flows!)
6. Look for a company that is a Franchise (CocaCola, Gilette, etc)
7. Buy low-tech, not high-tech
8. Concentrate your stock investments
9. Practice inactivity, not hyperactivity
10. Do not look at the ticker
11. View market downturns as buying opportunities
12. Do not swing at every pitch
13. Ignore the macro, focus on the micro
14. Take a close look at the management
15. Remember, the emperor wears no clothes on Wall street
16. Practice independent thinking
17. Stay within your circle of competence
18. Ignore stock market forecasts
19. Understand "Mr. Market" and the "Margin of safety"
20. Be fearful when others are greedy and greedy when others are fearful
21. Read, read some more, and then think
22. Use all your horsepower
23. Avoid the costly mistakes of others
24. Become a sound investor

I hope these principles are good for you, or at least some of them... As always I am very open to your criticism in the shape of comments...

Enjoy the week, Antonio

Posted on 18 Mayo 2008

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