Warren Buffet's 10 Golden Rules for Investing
1 Never invest in a business you can not understand
2 Risk can be reduced by concentrating on few holdings
3 Stop predict direction of the stock market, economy,intrest rate etc
4 Buy companies with strong histories of profitibalities
5Be fearful when others are greedy and greedy only when others are fearful
6 Unless you can watch ur stock holding decline by 50% without becoming panic,you should not be in stock market
7 Do not take yearly results too serious,instead focus on five year average
8 Focus on return on equity ; not on EPS
9 Calcualte " owners earning" to get true of value of the stock
10 AlwaysInvest for a long term.Think about "Does business have favourable long term prospects?"
Tuesday, September 25, 2007
Warren Buffet's 10 Golden Rules for Investing
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2 comments:
Great article. Who better to trust than Warren Buffet? That guy is such a success. I want to run a business, and this has great advice. I want to buy a business instead of a starting one. I know it'll be tough, but I'm ready for it. I've been looking for businesses, but I haven't found any that I truly like. Do you have any suggestions? Thanks
@Jane, have you checked out your local Chamber of Commerce? They might be able to you help you.
Otherwise, I suggest looking at BizTrader.com. It's an online global marketplace where you can buy, sell, and invest in a small business. There's a wide selection, making it a good place to find a small business on the Internet. Check it out and good luck!
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