5 tips that helped make Warren Buffett a multi-billionaire

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The self-made billionaire Warren Buffett He is widely regarded as the most prosperous living investor and, thanks to his investment company Berkshire Hathaway he has greatly enriched many other people on his way. "22"> The self-made billionaire Warren Buffett is widely regarded as the most successful live investor.And through the intermediary of his investment company Berkshire Hathaway he many enriched many other people on the way.

How did he get to be so good, from whom did he learn his craft, and what are his

A piece of art? a company

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A decisive turning point came The young Buffett read Benjamin Graham's book The Intelligent Investor in 1949, then studied under his command at the Columbia Business School. "data-reactid =" 25 "> A turning point came when young Buffett read Benjamin Graham's book The Intelligent Investor in 1949 and then studied under him at Columbia Business School.

Buffett Graham has laid the foundation for his own style of investing and a first key lesson was what is really a part in the title of a company.

For many people, it's 39; is a figure on a graph that you hope will increase.It is a bet that you hope to wear, or it is a scary and hard to understand thing that you should avoid at all. price, but what if I say it's the same as owning a corner store, perhaps in partnership with your family?

<p clbad = "canvas-atom canvas-text Mb (1.0em ) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" It's exactly what an action is a partial property of a company Buffett testified that he was selecting " investments on a long-term basis, weighing the same factors as would be involved in the 100% purchase of an operating business." " If you would not be happy to own any business, do not even buy a part of it." data-reactid = "28"> It's exactly what's a sharing. This is a partial property of a company and Buffett stated that he was selecting " investments on a long-term basis, weighing the same factors as those that would be involved in it." 100% purchase of an operating business. " If you I would not be happy to own any business, do not even buy a part of it. [19659006Buythebestforever

Do you spend time looking for the next big thing out there, the newcomer neglected flying any day now? What about the titles that you think you can get in and out quickly and pocket a profit in the short term?

A problem with this approach is that while you are looking for these short term deals to try to make money fast, you are likely to be neglecting the really great generators of wealth long term.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – -sm" type = "text" content = "Buffett says:" [19459009Itisfarbettertobuyawonderfulcompanyatareasonablepricethanafaircompanyatawonderfulprice "" data-reactid = "32"> Buffett says: " It is far better to buy a wonderful company at a fair price than a fair company at a wonderful price. "

The best through history brings steady profits year after year. easily turn their shareholders into millionaires. But those who look from a short-term vision "today's biggest deal" never buy them – and they lack serious potential wealth.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) –sm Mt (0.8em) – sm" type = "text" content = "And, as Buffett says," o buy something that you would be perfectly happy to hold if the market closed for 10 "" data-reactid = "34"> And, as Buffett says, "o n & nbsp; Buy something that you would be perfectly happy to own if the market closes for 10 years. " [19659010Celapourmuchreducedlythechoiceofthesactionswouldbecome

Value, not price

For many, the price of an action is what matters, and the main interest lies in where it goes on a daily basis. It could not be further from Buffett's approach, nor should he approach yours.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mo (0) – sm Mt (0.8 em) – sm" type = "text" content = "No, this is the value intrinsic of the underlying business that is important – according to one of the famous Buffet quotes: " The price is what you pay, the value is what you get " How the price of & # 39; 39, can an action be wrong in relation to the underlying value of the stock? " data-reactid = "38"> No, it's the intrinsic value of the underlying business that is important – according to one of the famous Buffet quotes: " The price is what you pay, the value is what you get Can a stock price be wrong in relation to the underlying value of the stock?

<p clbad = "web-atom canvas-text Mb (1.0em) Mo (0) – Mt sm (0.8em) – sm "type =" text "content =" This is covered by an often quoted opinion of Graham, that "I in the short term, the market is a voting machine, but in the long run it's a weighing machine. "But what does that mean?" data-reactid = "39"> That's covered by an often quoted opinion of Graham, namely that "I in the short term, the market is a voting machine, but in the long run it is a machine to weigh. "But what does it mean?

In the short term, setting the market price of an action is a popularity contest. Stocks go up and down simply because people Buy and sell them, and people often buy and sell for the most irrational reasons.

But in the long run, all these short-term ups and downs eventually come back to reflect the underlying value of the stock. So ignore fashion and fashion and buy on valuation, not on price.

Safety Margin

<p clbad = "web-atom canvas-text Mb (1.0em) Mb (0 – sm Mt (0.8em) – sm "type =" text "content =" To explain his desire to have a safety margin in his investments, Buffett suggested not to " try to drive a 9,800-pound truck on a bridge that says, capacity: 10,000 pounds. But go a little way and find one that says, capacity: 15,000 lbs res . "" data-reactid = "43"> To explain his desire for a margin of safety in his investments, Buffett suggested that you should not " try to drive a truck 9 800 pounds on a bridge that says, capacity: 10,000 pounds. But go a little further and find one that says: capacity: 15,000 pounds .

Graham's main lesson is to look for a title where the price you have to pay is sufficiently lower than your badessment of the intrinsic value of the business. It does not have to be incredibly cheap, just with this margin of safety.

Do we see the best companies with these safety margins? Of course we do. Whenever we see the market downturn, it's usually a sure sign that big companies are selling at a price too low.

Even entire sectors may remain under-valued for surprisingly long periods. At the present time, for example, I consider that the insurance industry offers an interesting margin of safety

Focus

<p clbad = "web-atom canvas-text Mb (1.0em) MB (0 ) – sm Mt (0.8em) – sm "type =" text "content =" Conventional wisdom suggests that we should diversify our investments to ensure security, but how does this fit with Buffett's statement? according to which the diversification of 1945 is a protection against ignorance, little sense if you know what you are doing "?" data-reactid = "48"> Conventional wisdom suggests that we should diversify our investments to ensure security, but how does this fit with Buffett's statement that "the historization of 19459008 is a protection against ignorance." That makes no sense if you know what you are doing "

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