Warren Buffett Stock Picks
Warren Buffett strategy is known worldwide for being one of the most successful at buying stock picks ever. His philosophy is based on the Benjamin Graham process of value investing. When he took control of Berkshire Hathaway in 1965 he invested $10,000, this investment today is worth nearly $30 million. If he has invested this amount in the S&P 500 it would have grown in value to $500 000!
Looking at numbers like this is it not surprising that the Warren Buffett legend has also grown to mythical proportions. But how did he do it? By value investing, he like many other bargain hunters, looks for product that are undervalued, finds them and invest in their stocks. The majority of other buyers don't see the investment value in these products, but Warren Buffett does.
Securities with low intrinsic worth are grist for his mill. He identifies these and predicts their worth by analyzing the company's fundamentals. The majority of buyers are unable to predict this and Warren Buffett seems to know that the market will eventually favor his investments.
Supply and demand do not concern him in the least, although traditionally this is what controls a market. Warren Buffett wants long term returns not capital gains. His famous quote "In the short term the market is a popularity contest; in he long term it is a weighing machine" says it all.
He looks at stocks in terms of the company's overall potential to make money. Because he seeks long term investment value, capital gain is of no consequence, and this is what makes value investing so different to other methods of investing.
The relationship between a company's level of excellence and it stock price is integral to any investment opportunity Warren Buffett looks at. He has a series of in-depth questions that he asks himself in order to asses an investment opportunity. He admires companies which avoid excessive debt, and it is relevant to him if a company has a product which is dependent upon commodities. There are also many other considerations, but anyone wanting to invest, would do well to take a page from the book of Warren Buffett. - 23221
Looking at numbers like this is it not surprising that the Warren Buffett legend has also grown to mythical proportions. But how did he do it? By value investing, he like many other bargain hunters, looks for product that are undervalued, finds them and invest in their stocks. The majority of other buyers don't see the investment value in these products, but Warren Buffett does.
Securities with low intrinsic worth are grist for his mill. He identifies these and predicts their worth by analyzing the company's fundamentals. The majority of buyers are unable to predict this and Warren Buffett seems to know that the market will eventually favor his investments.
Supply and demand do not concern him in the least, although traditionally this is what controls a market. Warren Buffett wants long term returns not capital gains. His famous quote "In the short term the market is a popularity contest; in he long term it is a weighing machine" says it all.
He looks at stocks in terms of the company's overall potential to make money. Because he seeks long term investment value, capital gain is of no consequence, and this is what makes value investing so different to other methods of investing.
The relationship between a company's level of excellence and it stock price is integral to any investment opportunity Warren Buffett looks at. He has a series of in-depth questions that he asks himself in order to asses an investment opportunity. He admires companies which avoid excessive debt, and it is relevant to him if a company has a product which is dependent upon commodities. There are also many other considerations, but anyone wanting to invest, would do well to take a page from the book of Warren Buffett. - 23221
posted by X - Men @ 4:48 AM
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