Frank Owens Limited Advisory Services Tokyo Japan on Warren Buffet ’ s Ten Best investment Tips
Many consider Warren Buffett , the world ‟ s fourth wealthiest individual , is the greatest investor in the previous century .
Mr . Buffet is well-known for his patent folksy insight on money matters and continues to provide many investors with valuable investment advice . Here is a rundown of what many consider Warren Buffet ‟ s best investment tips ( not including the latest stock picks ): price .” ( From a letter to shareholders in 1989 )
1 . “ It is better to buy a wonderful company at a fair price than a fair company at a wonderful
This advice from Buffet is a favorite quote of many investors . It contains a fundamental principle he has used effectively for years as his strategy for investing . Essentially , he chooses firms which he can completely understand and whose innate worth is clearly apparent , no matter what its present financial condition might be . Today , Buffet is # 4 only because he gives out large sums of his money to charity ; otherwise , he would be the top choice -- like he was in 2008 in Forbes ' choice of the richest person worldwide .
Buffett started his enterprising journey in Omaha , Nebraska as a boy selling magazines and chewing gum to families . At 14 , he filed his first tax return ( claiming deductions for his watch and the bike he used on his paper route ). He and a friend purchased and operated a pinball machine when he was in high school . The two also set up a town barber shop and later on expanded the business around town to incorporate pinball machines .
Currently , Mr . Buffett has a personal net worth of about $ 55 billion and his investment company , Berkshire Hathaway , completely owns several reputable U . S . firms , such as Dairy Queen , Helzberg Diamonds , GEICO and 50 % of Heinz .
2 . “ Rule No . 1 : Do not lose money ; rule No . 2 : Remember Rule No . 1 ” ( From " The Tao of Warren Buffett ", 2006 )
3 . “ Our approach is very much profiting from lack of change rather than from change . With Wrigley chewing gum , it ' s the lack of change that appeals to me . I don ' t think it is going to be hurt by the Internet . That ' s the kind of business I like .” ( From Businessweek , 1999 )
Berkshire Hathaway ' s portfolio proves that Buffet practices what he preaches : The company invests principally in firms that have operated for many years and can be described in a few words : GEICO sells insurance , Dairy Queen sells ice cream , etc .
The story of how Buffett ' s relationship with GEICO began goes back as early as 1952 , at the time he sought to meet one of his investment idols , Benjamin Graham , who sat on GEICO ' s board . He ended up accidentally meeting the firm ‟ s vice-president then , Lorimer Davidson , who has become Buffet ‟ s close friend since then .
4 . “ The stock market is a no-called-strike game . You don ' t have to swing at everything – you can wait for your pitch . The problem when you ' re a money manager is that your fans keep yelling , „ Swing , you bum !‟“ ( From " The Tao of Warren Buffett ", 2006 )
5 . “ I try to buy stock in businesses that are so wonderful that an idiot can run them . Because sooner or later , one will .” ( From a panel discussion after the documentary premier of " I . O . U . S . A ", 2008 )