Warren Buffet’s Strategies
Warren Buffet’s is a well known investor and much was picked up from his mentor Benjamin Graham. Only within investment circles, Benjamin well known. Perhaps living in an earlier era had something to do with it, with less books available, less internet, etc.
With that little background on Graham, I came across this article on Biznews section of the NST sometime late January. The article is also posted on the Malaysian Investor site. Min.com.my site is run by the Securities Industry Development Corporation or SIDC to education investors about investments.
Anyway, Benjamin Graham considers the following elements critical to successful investing
- Understand the difference between investment and speculation
- Do a detailed analysis as stocks represent a share of business
- Build Margin of Safety
- Have a realistic return objective
- Treat the market as servant, not master
The points raised are valuable investment principles, and I think items number 1,3,4 and 5 are “do-able” for most investor. However, I would think that for the general man in the street to do a “detailed analysis of a company” would be beyond their ability.
You can read the full article in here. Hope it helps you understand the basics better.