Category: Money tips Release Date: 2007-03-13
New York City time, February 27, 2003, Microsoft Chairman Bill Gates, to 40.7 billion U.S. dollars worth once again topped "Forbes" magazine, the throne of the world's richest man, Warren Buffett to invest 30.5 billion U.S. dollars followed.
Five years ago, Both of these charts had been sit tight first two, when they had side by side to the University of Washington Business School to do a speech, when a student asked them to talk about the road to riches, Buffett said: "is used to of power. " Gates frankly "Basically I was a Buffett fan." Microsoft CEO Bill Gates that so fascinated by, and known as the "god of investment" in financial management habits what is it?
Customary one: putting all their eggs in one basket
Now everyone is becoming more conscious of financial management, and methods is also eyes of the beholder, the wise views about that. Many people believe that "Do not put all your eggs in one basket," so even if there is a greater risk of certain financial assets, it will not annihilated. But Buffett has argued that investors should be like Mark Twain suggested, put all your eggs in one basket, and then carefully optimistic about it.
On the surface everyone seems to have taken place in Buffett's disagreement, in fact, both sides there is nothing wrong, because there is no financial know-how fits-all truth. Warren Buffett is an internationally recognized example of "stock god" naturally, we have confidence in the largest holding a small amount of stock. We ordinary investors due to the limitations of their own energy and knowledge, it is difficult for investors with professional in-depth study, this time be wise to diversify investment. In addition, Buffett focused investment strategy to focus on research, focused on decision-making, in terms of time and resources are limited, decision-making many times the success rate of less natural than the investment decision-making lower, just like the one-child than families with many children under the care of a little more, some look a lot like the Zhuang.
Habits 2: unfamiliar not do business
Chinese have a saying called "business unfamiliar not do," Buffett has a habit of not familiar with the stock not do it, so he will always only buy stocks of some traditional industries, not to touch those high-tech stocks. Speaking for "Gillette razor," the views of shareholders, Buffett said he can sleep at night because the next morning, there are 25 million men have to shave. In early 2000, when Internet stocks climax, Buffett did not buy. At that time it was agreed that he had fallen behind, but now looked back and buried a group of dot-com bubble crazy speculators, Buffett has once again demonstrated its strong investment master style, becoming the biggest winner.
This example does not mean that we should not speculate Internet stocks, but rather tells us that any one should carefully before investing research, he did not know thoroughly, and would like to know before a hasty decision-making. For instance we now believe that deposit interest rates are too low, it should be to find ways to invest. The stock market downturn, many people wanted to fry stamps, currency speculation, fried futures, to invest in real estate investment and even "small fish" was in fact the risk of these channels are not necessarily lower than the stock market, the operation is also more difficult than the stock market. So, not sure themselves before the money is spent on savings ahead of blind investment safer. Statistical results also show that bank savings are still everyone's first choice, "Calm Heart," not unreasonable, after all, our future investment opportunities in many things in Taiwan, leaving a cash in, not afraid be profitable.
Habit 3: Long-term investments
Someone has calculated that Buffett's investment in each stock is not less than eight years. Buffett once said that "short-term stock market forecast is poison, it should be placed in the most safe place, away from children and those in the stock market behaves like a child-like naive investors."
CCTV has done a stock program, called "The Decade of shares Xiang Chen," about a long-term investments in the stock market stocks success stories. Unfortunately, we have seen more of it is the opposite example, many people chase the sell into the end, contributed only to brokerage fees, and they actually have竹篮打水一场空. Let us count an account, according to Buffett's lower limit, a stock holding eight years, buying and selling fee is 1.5%. If, in the eight years, convertible once a month, spending 1.5% of the cost of a 12-month expenditures were 18%, 8 years is not compounded, static expenditure reached 144%! Not do not know, be shocked, the devil is often in the detail.
