The Company that He BOUGHT will be as good as possible, so that fundamentally improved the performance of the business, more financially healthy and well. Companies that previously will bankrupt, can be changed by the company to become a section like sugar that were very interesting for the investor. Do not wonder if the stock price of Berkshire Hathaway - - the company used as a tool for many companies to buy - - its prices continue to increase in the capital market.
However, the business strategy that Warren Buffett used, based on patience and the patience it may be more suitable in countries where the applicable exchange his stock system has a good and strong, which should be strong supervisory control and besides publishers share to be honest. But on this part of the world system, not all exchanges his stocks good and strong, because there is a supervisor exchange can be corrupted and the company that does not contain credible.
The core from Warren Buffett Selecting Stocks :
*.Buffett buy companies that are always simple business can be understood. The Company has a past performance is consistent and has a long-term prospects are promising. This is the basic make Buffett does not want to go to Microsoft. If you do not understand the business of a company, you can not make a rational assessment of the value of investment. In addition, the management company must have three requirements, ie must be rational, open to the shareholders, company management does not imitate others, and must allocate money to investment companies that have added value for shareholders.
*. Buffett buy stocks only if the price attractive. That is, when stock prices are falling to the bottom of the price reasonable analysis, the primary company that operates continuously and healthy. Difference between market price and the price reasonable this function as safe margin (margin of safety), which can reduce losses due to miscalculation. Margin also be a source of profits if the stock price back to normal.
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