Home / Stocks / 5 Rules For Investing by Warren Buffett
5 Rules For Investing by Warren Buffett

5 Rules For Investing by Warren Buffett

5 Rules For Investing by Warren Buffett

You don’t need to be an expert in order to achieve satisfactory investment returns.” But Buffett also warns that the investor should recognize her limitations and “keep things simple.

“Focus on the future productivity of the asset you are considering.” Buffett notes that no one can perfectly forecast the future profitability of an investment. “isn’t necessary; you only need to understand the actions you undertake.”

 “If you instead focus on the prospective price change of a contemplated purchase, you are speculating.” Buffett has nothing against price speculation. But he emphasizes that it’s important to be able to know the difference between investing for the productivity of the asset versus investing on hopes that the price of the asset changes.

“With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field — not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.” In other words, focus on the long-run.

“Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.” So mute CNBC, Bloomberg TV, and Fox Business. Unless Warren Buffett comes on.

 

Kamikaze Defense

Factors That Drive Stock Prices

Stock Market Crash, A Historical Pattern? by Wim Grommen

Current Problems Associated with the End of the Third Industrial Revolution by Wim Grommen

All Stock Market Indices Are Fata Morganas by Wim Grommen

15 of Steve Jobs most inspiring quotes

Check Also

GBPUSD

Technical Analysis of GBPUSD

Technical Analysis of GBPUSD The pair has fell to strong support area near a cluster of support defined by the 100 bar MA on the 4-hour chart, the 200 hour MA and the 100 hour MA.  The three moving averages come in at 1.3161, 1.3165 and 1.3171 respectively.   The low for the day bottomed at ...