Forbes came out with their world's billionaires list this past week and guess what? Bill Gates has fallen to #3 on the list! That distinguished place at the top of the billionaire list now goes to Warren Buffett, the guru investor that many of us want to emulate. If you've been reading this blog for awhile, you know that I'm a Buffett fan. I have read Buffettology to gain some insight as to the philosophies and strategies that goes on in the mind of a man who has risen to extreme wealth.
One thing I've learned from many successful investors is that to be a good investor, you must diversify your risk in the stock market. I came across this list of stocks owned by Berkshire Hathaway that contains some very big names in the corporate world including Wells Fargo & Company (WFC), Wal Mart Stores (WMT), Proctor & Gamble Company (PG), and American Express (AXP), just to name a few. In his recent letter to shareholders Buffett says:
"Charlie and I look for companies that have a) a business we understand; b) favorable long-term economics; c) able and trustworthy management; and d) a sensible price tag. We like to buy the whole business or, if management is our partner, at least 80%. When control-type purchases of quality aren't available, though, we are also happy to simply buy small portions of great businesses by way of stock-market purchases. It's better to have a part of the interest in the Hope Diamond than to own all of a rhinestone."Here is a video of Buffett talking about PetrolChina and his strategy on buying stock...
Another thing I've learned from Warren Buffett and why he is so rich is because he values his employees and he gives back to the community. I'm a firm believer that "to get...you have to give".
However, one of the most important things I think we can learn from Buffett has nothing to do with investing savvy or business skills. Warren Buffett simply loves what he does.
Related Post:
Warren Buffett Gives Warning About Investing in China
0 comments
Post a Comment