Day traders often look for stories of people who have had great success in the markets for guidance. They flock to biographies of prominent financial hope, suggestions and insights as a career advantage for themselves. These celebrities, Warren Buffet, is often seen as a model, and a book recently published about him, the snowball: Warren Buffett and the business of life is to increase its influence, no doubt. But while Buffet has much to invest in us, to teach hisThe lessons are less for day traders because of the nature of the investment strategies he uses. I'm not discounting the success of the buffet, but I want to emphasize that the traders on the difference between the strategies for them, and the buffet line of work is invested need to understand.
Warren Buffet is, of course, a legend. Before he gave almost his entire fortune to charity, was the richest man in the world. In 1962, when he began buying shares of Berkshire Hathaway, aeach share is $ 7.50. Today Buffet Berkshire chairman and CEO, and is a "Class A" shares worth more than $ 118,000.
Buffet is definitely a financial genius, and many try to follow his advice, to become rich. But you must understand that he is not a stockbroker. Its investments are in stock. Instead of investing in companies.
Buffet has tried to make this very clear. As he once said: "If not, when you make an investment, you're holding the test is at least tenYears, not waste more than ten minutes this into account. "He also said:" [s Bunnies] are not just a piece of paper. They represent the ownership of part of the establishment. So, when contemplating an investment, think like an owner perspective. "Based on these principles, has developed what he calls internal card, which took in "Wonderful company, which invests, inter alia, the following criteria:
• Is a good return on capital without a lot of debt they have.
• You must understand.
• You will see their profits in cash flow.
• You have a strong franchise and therefore the price of freedom.
• Do not take a genius to run.
· Your profits are predictable.
• The management is owner-oriented.
But buffet goes even further, looking for "evidence of subjective long-term viability of a company. For example, they say, that once a company whose owner counted the purchasedFact sheets on the roles of the 500-sheet toilet paper to see if he cheated. (It turns out that he was.) Or in another case, a buffet is investing in a company whose owners painted only the side of the building into the street to save money. And in 1983 he acquired the Nebraska Furniture Mart Buffet, because he had the way of its founder, Rose Blumkin, businesses happy as a Russian immigrant, was their strategy at lower prices than the big boys, and she was a ruthlessNegotiators.
There is a clear trend. Before the Buffet has invested in a company team, he has examined all: financial data, management (including their biographies and sometimes even their personal spending habits), the corporate vision, mission and principles, policy staff, and more. Then purchase enough shares and the company actively influence and change strategies and policies. He said: "The shares are owned by part of a business, and actsIdea that once invested in a business.
Warren Buffet is the largest investor in the world. It buys and sells companies, and used to purchase shares of the company are a part of their respective owners. But Buffet is not a trader, and his strategies for success are very different from those that earn money for day traders. He does not analyze the market trends, looking for movement. Instead, look at the fundamentals of a company and decide if it believes that business can growlong term. It 'important to keep in mind this distinction if you want to make money on the market. Day-traders can also admire Warren Buffet, but he will look elsewhere for a single model.
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