Buffett s investment jargon to make money winners Money Tips

Category: Money tips Release Date: 2006-10-12

Wall Street investment guru Warren Buffett invested money to make money and winners Collection code word: 5 +12 +8 +2 Palestinian approach can be broadly summarized as five investment logic, and 12 investment points, eight stock selection criteria and two investment.

5 Investment Logic

1. Because I regard myself as a business operator, so I become an excellent investment in people; because I regard myself as investors, so I become an excellent business operators.
2. Good business is more important than a good price.
3. Life, the pursuit of consumer monopolies.
4. Final decision on the company's stock price is the company's real value.
5. There is no time for the most outstanding companies sell.

12 investment points

1. Use of the market's silly to carry out regular investments.
2. Bid determine the rate of return, even long-term investment as well.
3. The composite profit growth and the avoidance of transaction costs and tax benefits to investors infinite.
4. Do not care how much a company earns the coming year, only interested in the next 5 to 10 years earn much.
5. Only invest in companies with high certainty of future earnings.
6. Inflation is the greatest enemy of investors.
7. Value and growth-oriented investment philosophy are interlinked; value of an investment in the discounted value of future cash flows; while growth is only used to determine the value of the forecasting process.
8. Investors, financial success and his understanding of the investment company is proportional to.
9. "Safety margin" from two to assist your investment: first, the buffer may be the price of risk; followed by the availability of a relatively high return on equity.
10. Have a stock, looking forward to it next week on the rise, it is very foolish.
11. Even Federal Reserve Chairman secretly told me that the next two years, monetary policy, I would not change any of my one as.
12. To ignore the stock market up or down, not worry about the economic situation changes, do not believe any forecast, do not accept any inside information, only pay attention to two points:
A. What to buy stocks; B. Bid Price

8 stock selection criteria

1. Must be a consumer monopoly.
2. Product simple and easy to understand the prospects are bright.
3. Have a stable operating history.
4. Operators rational, loyal, always with the interests of shareholders first.
5. Financial stability key.
6. Operation, high efficiency, good returns.
7. Less capital expenditures, free cash flow sufficient.
8. Reasonable prices.

2 investment

1. Card holes, life-long possession, annual inspections the following figures:
A. The initial return on equity; B. Operating margin; C. Debt levels; D. Capital expenditures; E. Cash flow.
2. When the market has over-estimated to hold the stock price, may also consider short-term arbitrage.
In a sense, the card holes and lifelong holding constitutes a Pakistani approach of the most unique part. And most people enchanted part of the