Let continue with my analysis of Warren Buffet's Investment strategies.
- Be a great reader, a voracious reader, of all the authentic material available on the businesses and Industries you are investing in.
- There are excellent business and financial newspapers, magazines and books for the purpose. The annual reports and quarterly results etc are a great source. Now, the Net also provides lot of material.Buffet also reads about the competitor firms. Then, he thinks and waits for an appropriate time to make his investment.
- He also advises - select the material to read. You don't have infinite time to go on reading. He advises not to waste much time on reading market forecasts, formula based constructs and theories. Instead, find, real, solid material on the business progress. Dig deep into real, useful, understandable material.
- To be a good long term investor, he advises us to avoid bad habits and cultivate good habits. Most of these good habits are covered in the blog posts so far. we need to make them our HABITS. So, is the case with the bad habits. We need to eschew them.
- He says, avoid the Herd behaviour. Ignore daily stock tips of others. Forget about daily stock price movements. Avoid Industries you do not understand. Buy when other people are running away from Market. Remember Mr. Marker and margin of safety.
- The costs associated with investment must be carefully considered always. You must assess your net return.
- You must be on the look out for what types of mistakes others are committing and refrain from committing such mistakes yourself. You investment decisions must yield a net profit to you commensurate with your reasonable expectation.
- Be a good and sound investor, not necessarily a brilliant one.Your investments must earn a decent profit and capital appreciation - but must not become losing ones.
- Every one should preferably write down such investment related good habits, read them periodically and adhere to them - for success.