You have Bad Habit or NOT for INVESTOR

Warren buffet suggestion , to become a better human being, try writing the list begins with the quality of people you admire, and also a list of the quality of the person who is not you admire. Then compare the two, and look for certain patterns therein. Then start to adopt the qualities of the person you admire before, be implemented in your life. Where, when this is done continuously, it can become your habits. If you do this again, your behavior will change. Develop your positive habits, and remove a bad habit.

Here are some question that you may often ask yourself, to ensure that you do not bring bad habits to invest in;

1. Do you make enough observations and analysis before deciding to buy a company stock?
2. Do you only check your stock prices periodic and avoid "noise" rumors of daily "people" who usually say nothing?
3. Do you always avoid tips on a stock, of any origin?
4. Do you avoid the "Crowd" and make your own investment decisions?
5. Would you show patience with the wait for a company value ?
6. Do you avoid investing in companies that do not you understand?
7. Do you act when people fear and sell on the greed of others?
8. Do you apply the rules Mark and Margin of Safety?
9. Consistent if you read the various magazines and newspapers or you can see at BLOOMBERG?


If you answer Yes to a minimum of 7, then you are a sincere pursuit Mr Buffett, and you are in the correct path in investing.

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ALWAYS CREATE ADDED VALUE!!

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 companies that have highest equity (ROE) good, not income per share. Difference between high and have to return every dollar that is put by the company, the company can create a minimal market value one dollar company.

*. 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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Benjamin Graham and Philip Fisher

Warren Buffett bought a stock in companies that fit with his criteria, not giddy with tables, graphics and technical analysis formulas. This is more in His analytics is The Company Fundamental. His favorite book is The Intelligent Investor Ben Graham works, their teachers. according to Graham, are investing in connection with how to understand the big picture, and not glued on the technical details.

Two teachers' claim to the Warren Buffett also, besides Benjamin Graham, is Philip Fisher. Two people who are considered as BEST Teachers by Buffett has a different Investment character. Graham is well known as a value investment strategy. When choosing stocks, Graham always build on the fundamental analysis of corporate financial strategy and diversification.

This means, Graham emphasizes the quantitative criteria, always looking for the stock market price is below fair price. Instead, Philip Fisher put more emphasis on qualitative criteria. According to Fisher, before buying a stock, first see the management team managers, how the company is managed. Buffett see, there is similarity of the two people are experts. Both successful and equally long-term thinking for each investment.

For example, Graham recommends that investors choose stocks that are feasible, although the stock market is suddenly closed tomorrow. Meanwhile,

Fisher gives the example through the way he holds a Texas Instrument shares, purchased since the beginning of the company is doing private placement.

Well, Buffett is brilliant, trying to merge strategy and Graham Fisher. You can used too!!

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MESSAGES TO YOUNG TRADER by Warren Buffet

'Stay away from credit cards and invest in yourself and remember:

1. Money does not create human beings. But man can create MONEY ....
2. Get your life as yourself. Important that you need COMFORTABLE ...
3. Do not do what other people say. Listen to their course, but just do what makes you comfortable (feel good). Do not follow The others!!!
4. Do not buy goods because Its Brands. Wears clothes that really make you feel comfortable.
5. Do not spend your money for goods that are not important.
Use your money wisely for the needs of the
you really need.
6. Finally, this is all your life. "Life is only once. Why do you need to give people the opportunity
to manage your life?. Live with your own style, which is you're happy, you're satisfied, you are comfortable, and you will be happier ...

Rules pay attention please:

• Pay attention to the 2% rule. do not let that one position in the loss exceeds 2% of total capital. This rule will be able to determine your stop loss level is at. Likewise this rule can help you how it is that the lot number associated with stock prices and associate with the 2% rule is

• Note the 6% rule. If all the losses have reached 6% of total capital, selling all and stop trading in the first month. Find the causes of the error so that the losses arising up to 6% of these. Try to fix the error and have to know if the error may be new trading again on the following month.

• Set the stop before you shop. Making trading plan contains what price that I need to buy, how does the what price that I need to take profit and how much will be cut loss and specify trailing stop (stop steps) if you want your profit be higher than your target. It is recommended not to make a purchase before trading plan is prepared.

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Buying Quality with Warren Buffet

• Management. Warren puts strong management on the top of his list. He likes to meet them in person and get to know them. That’s a little too much to ask of you. But, at minimum, you should read the CEO’s bio (which is typically provided on a company’s website). And google the CEO’s name. Nine times out of 10, you’ll get plenty of instant reading material. If you can, go to the company’s annual meetings and listen to the CEO and other executives speak. Or – if that’s not possible – listen to their

-in quarterly earnings report.

Just remember that there’s no such thing as too much direct and up-close exposure to the companies you’re investing in. The more you know about them, the better buy/sell decisions you will make.

• Quality products. As a general rule, the more high-end its products are, the better margins a company makes. Companies charge a premium for new technology, sleeker designs, more features, better packaging – which all go into high-end products … and customers gladly pay. The less high-end, the easier it is for China and other countries to make cheap copies and put your company out of business. ‘Nuf said.

• Understand the company. What does this have to do with quality? Not much. But it has everything to do with your ability to judge whether a company is in a class by itself or classless. You need to know at least something about the business. This is a relative requirement, because this kind of knowledge often falls somewhere between knowing nothing and knowing it all. But if you don’t have a clue about what makes a company’s

business tick, STAY away. Whether or not a company can grow its profits should not be a guessing game. Nor should it be a “follow the leader” game. Even if everybody in your bridge club is flocking to this business or a company in this business, still STAY AWAY. Who knows what they’re following or why? Bad advice is the ruination of many an investor.

Is looking into all this really necessary? Can so many people get it wrong? Warren, in fact, counts on so many people not getting it. That’s why he loves “cigar-butt” companies that are so out-of-favor nobody will touch them.

He stays away from the buzz-generators. As a “life-long technophobe” (as he confesses on the Berkshire website), he stayed away from the high-tech companies when they were the rage in the 1990s. How dare he?

“Warren Buffett should say ‘I’m sorry,’” fumed Harry Newton, publisher of Technology Investor Magazine, in early 2000. “How did he miss the silicon, wireless, DSL, cable, and biotech revolutions?”. That was the year AOL stock rose six-fold and Amazon.com had rocketed by 1,000%, while shares in Berkshire had climbed only 11%. But, as history proved, the “Buffett Way” won out in the end. The dotcom bubble exploded, leaving millions of Americans poor and in shock.

Source from http://www.scribd.com/doc/3828234/investlikebuffett

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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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