Warren Buffett buy every stock

Warren Buffett: buy every stock can

Do you think that you have no
business, if you are on the stock
market? Uorren Baffet wants you
Think again.

In an interview with CNBC's Becky
Quick earlier this year, Buffett was asked,
why he says "some thoughts
to invest" in terms of its
letter to Berkshire shareholders Hathawayk and
allocates a farm 50 miles north of
Omaha, Nebraska that he bought
in 1986, and commercial real estate in
New York, which he bought in 1993.

Quick said what many
thought, Buffett has in mind,
that the real estate was the best investment,
than stocks. She asked: "How are you
think real estate and other assets
- the best place for the money than stocks?"

Buffett's answer was direct
and unexpected:

"No, they speculate
wrong. I have used these illustrations,
because I do not know so much about
property or farms.
And yet one could successfully invest
in them. And I feel the same way when
people talk about stocks ... You can have
big - lifetime - experience
in shares and not really be
a specialist in the field of accounting
accounting. "

In terms of financial
crisis, many Americans believe that
the stock market is rigged. And this
easy to understand, since the average American
It can not ivestirovat a lot of money. But
Buffett and many others want us to
We think differently about promotions.

Buffett's strategy

So how should we
to begin? In a letter to investors Buffett
He outlined his "Investing Basics."
He began by saying that said the following:

You need not be
expert to achieve good
investment income. But if you
generally have no idea of
the stock market, you have to admit it
undergo specific training,
to work quite well. it
just believe it. Although we do not have
be experts in aspects of the business and
accounting that accompanies
his, Buffett again and again notes that
when selecting investments we need
stick to our circle of competence
and avoid those areas that we
We do not know anything.

Buffett may have nothing
He does not understand agriculture and
real estate, but he knew enough about
basic trends farms in Nebraska
and real estate in New York and
therefore it feels comfortable
investing in them. In the same way we
should only invest in a company,
whose business we understand. Or, as he
once I put it, "if you are good
know only one thing, you have to
to use their talents to be
the most useful and make others
use them".

In the letter he also
He suggested that people try to understand
the future of productivity, which
they are buying - whether stocks, farm or
part of the property. If all the signs
indicate that the asset will
productive and will continue to make a profit
in the coming years and decades, it
It can be a profitable investment (although
Price also plays in this issue).

You need not be
attentive every day and worry
due to fluctuations in price and the market or
economic conditions. Instead of this
should seek competent assets to
understand the true long-term value
the most investment.

To summarize, Buffett
said that when he and his longtime business
partner Charlie Munger invested in
action, they thought that they buy "small
business meals". "This analysis is very
similar to what we use in buying
whole enterprises"- Buffett said.

While Buffett
He considers that the shares can be for everyone,
He does not say that they should be at
each. In short, he understands:
Many may not have the time, energy,
desire to make your own
investment deposit, and therefore use
some other alternative.

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