Warren Buffet Strategy 1
Warren Buffet is Americas most famous investor. Any investor, especially those who are looking to be experts into trading stocks are looking up to him as a role model. He was idolized by many because of his investing strategies that people tend to emulate. He was the godfather of investing. He was also famous for his frugal living despite the fact that his company is worth to $69 billion dollars.
This article is written to provide us with an insight inside the brilliant mind of Warren Buffet. This article is written to provide us with strategies he himself used as a guide to investing. The strategies are actually questions that one has to ask himself as a part of due diligence. First question is Is this business simple and understandable? It is easier for an investor to invest in a company that he is knowledgeable of in order to effectively forecast problems or growth events should they arise.
Second is to ask yourself: Does the company have a consistent operations history? By researching more on the operations management of the company since the time it was conceived you will have a clear view on the operating history of the company and thus be able to forecast future trends. Third is to ask: Does the company have favorable long-term prospects? A wise investor would research on the future plans of the company as it contains the true value of the investment.
Fourth is to ask the question Is the management rational? This delves deeper into the values of the company, its mission, vision, etc. It is also advisable to look on some operations procedure especially that which relates to money like where do the company allocate excess profits, etc.
The fifth question is this: Is the company candid with its shareholders? It is important to have a good working relationship and open communication for your partners. - 23217
This article is written to provide us with an insight inside the brilliant mind of Warren Buffet. This article is written to provide us with strategies he himself used as a guide to investing. The strategies are actually questions that one has to ask himself as a part of due diligence. First question is Is this business simple and understandable? It is easier for an investor to invest in a company that he is knowledgeable of in order to effectively forecast problems or growth events should they arise.
Second is to ask yourself: Does the company have a consistent operations history? By researching more on the operations management of the company since the time it was conceived you will have a clear view on the operating history of the company and thus be able to forecast future trends. Third is to ask: Does the company have favorable long-term prospects? A wise investor would research on the future plans of the company as it contains the true value of the investment.
Fourth is to ask the question Is the management rational? This delves deeper into the values of the company, its mission, vision, etc. It is also advisable to look on some operations procedure especially that which relates to money like where do the company allocate excess profits, etc.
The fifth question is this: Is the company candid with its shareholders? It is important to have a good working relationship and open communication for your partners. - 23217
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial I.Q. by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today.
posted by X - Men @ 12:42 AM
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