Friday, April 17, 2009

Warren Buffet and his simple method

Who is Warren Buffet? He is born in the Midwest of United States. He is known as the Sage of Omaha. His hair gray. His work not to follow crowd in The Wall Street. He became a legend, admired for his simplicity method for investing and he gain billions of dollars. Now He is the number two richest MAN in the world!!

What are His simple method :

1.He is not afraid to invest in unfashionable or unpopular companies. Do not underestimated companies does not popular. Its price does not move so fast but its safe and sure it have good VALUES.

2. He has to be excited about the company. He is talk about the company itself and the business that The company works, not the potential returns. He looks a company not like us. We buy stocks because the transaction as if we were buying into a private business. Mr Buffet buy as if He is going to partner up with it.

Mr Buffet does not depend on algorithmic models, modern software programs that use data and formula to create buy or sell indicators.

Before we buy something we need to figure out if we are getting a good price and good things. How does it perform? How long it can take? Who the owner? Which sector this company include in? Is this new?

You need to know what kind of a company that you buy its stock. If you do not know anything just know that stock price is cheap, you DUMBER!!! Sees The Company record for the last 5 or 10 years!! Watch its reputation and quality!

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