Buffett’s 12 Investment Law
1. Use of the market’s silly, for a regular investment.
2. The purchase price determine the level of return, even long-term investment as well.
3. Profit compound growth and the avoidance of transaction costs and tax benefits to investors infinite.
4. Do not care how much a company earns the coming year, only interested in the next 5 to 10 years earn much.
5. Only to investment companies with high future earnings uncertainty.
6. Inflation is the biggest enemy of investors.
7. investment philosophy of Value and growth is shared; value is the discounted value of future cash flows of an investment ; and growth is only used to determine the value of the forecasting process.
8. financial success of investors and his level of understanding of the investment enterprises Investors are directly proportional
9. “Margin of safety” to assist investors in two ways: first, a buffer the risk of possible price; then receive a relatively high return on equity.
10. Owns a stock, looking forward to rising inext week, it is very foolish.
11. Even if the Fed chairman quietly told me the next two 2 years of monetary policy, I would not change any one of my.
12. Ignore the stock market’s ups and downs, do not worry about the economic situation changes, do not believe any forecast, do not accept any inside information, only two points: A. what to buy stocks; B. purchase price.
Posted: June 7th, 2010 under Breaking News.
Tags: 12 Investment Law, Buffett, Buffett's 12 Investment Law