It is always interesting to see and look up at the Warren Buffet. His investing strategy is so ‘orthodox’, or conservative to say the least. It somehow defies so many strategies put forward by well known investment gurus, or what being practiced by wall street junkies. I only realized that it is actually a pretty simple one. Just as my ‘convert’ friend quoted the other day.
Out of curiousity, I checked his website – and truly amazed with its simplicity and depth of investing wisdoms, especially his letters to shareholders as found here. It is truly amazing that this old man has been beating the S&P 500 performances in most instances since the 1980s. And to me, reading his letters is enriching and eye opening.
To share my awe, I quote the most direct of Buffet’s advise here:
“…I look for companies that have;
1. a business we understand,
2. favorable long-term economics,
3. able and trustworthy management, and
4. a sensible price tag.
We like to buy the whole business or, if management is our partner, at least 80%…
A truly great business must have an enduring “moat” that protects excellent returns on invested capital
Our criterion of “enduring” causes us to rule out companies in industries prone to rapid and continuous change.
Originally published on luqyantamanni.wordpress.com, September 3, 2008: view original.
