Warren Buffet's 10 Golden Rules for Investing

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?"