Warren Buffet Strategy 2
Warren Buffet is considered to be the godfather of investing. His strategies are well sought after by thousands of investors around the world. He was idolized by many because of his great investing styles which made his empire worth to over $69 dollars last year. He is also famous because of his frugal living in spite of his riches. Here are some of his strategies that he shared with investors who are willing to succeed in the world of stock trading.
These strategies are merely guide questions one should ask himself before buying a stock or share. The first question is Does the management resist the institutional imperative? This statement means that the investor should look if the manager is able to decide with character when faced with difficult decisions or if he just gives in to peer pressure.
The second question is What are the profit margins? He tells that a company should be able to have good management skills in terms of its profits. Look deeper on how the company handles their profits. A bad company according to Buffet is one that has humongous sales but no profits because the profits are spent on company expenses. Try to look for a company with a good spending and financial handling and not one that is prone to overspending.
The third question is What is the return on equity? Buffet advises that equities are better than ratio formulas. He believes that the long term return on equity will have a more powerful effect than short term and simple earnings. By this, Buffet clearly states that investors should consider holding onto their stocks for a long period of time in order for it to have higher profit values.
These are just some of the strategies Warren Buffet followed and succeeded. It is advisable for investors to look this through and try to execute it in their own strategies. After all, the one who said them is considered to be the richest investor alive today. - 23211
These strategies are merely guide questions one should ask himself before buying a stock or share. The first question is Does the management resist the institutional imperative? This statement means that the investor should look if the manager is able to decide with character when faced with difficult decisions or if he just gives in to peer pressure.
The second question is What are the profit margins? He tells that a company should be able to have good management skills in terms of its profits. Look deeper on how the company handles their profits. A bad company according to Buffet is one that has humongous sales but no profits because the profits are spent on company expenses. Try to look for a company with a good spending and financial handling and not one that is prone to overspending.
The third question is What is the return on equity? Buffet advises that equities are better than ratio formulas. He believes that the long term return on equity will have a more powerful effect than short term and simple earnings. By this, Buffet clearly states that investors should consider holding onto their stocks for a long period of time in order for it to have higher profit values.
These are just some of the strategies Warren Buffet followed and succeeded. It is advisable for investors to look this through and try to execute it in their own strategies. After all, the one who said them is considered to be the richest investor alive today. - 23211
About the Author:
Mara Hernandez-Capili is a writer and a researcher on Business and Finance. Learn more on how to increase your financial intelligence by learning about emini trading today. Start earning extra income by making your money work for you through the emini trading system. "Start your journey to financial freedom not tomorrow, not next week, but today."
posted by X - Men @ 12:54 AM
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