Warren Buffett Quotes
| |
|
Last Poster |
Posts |
Pages |
Last Post |
| |
|
|
|
|
|
|
| Author |
Message |
     resillent1
Member
Username: resillent1
Post Number: 463
Registered: 10-2006Rating: N/A
Votes: 0
|
| | Friday, May 16, 2008 - 12:24 pm: |  
|
When you combine ignorance with leverage you get some pretty interesting results.
The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do.
You should invest in a business that even a fool can run, because someday a fool will.
For some reason people take their cues from price action rather than from values. Price is what you pay. Value is what you get.
Diversification may preserve wealth, but concentration builds wealth.
I'd be a bum on the street with a tin cup if the markets were efficient.
In the short run, the market is a voting machine. In the long run, it's a weighing machine.
With each investment you make, you should have the courage and the conviction to place at least ten per cent of your net worth in that stock.
Money, to some extent, sometimes lets you be in more interesting environments. But it can't change how many people love you or how healthy you are.
Chains of habit are too light to be felt until they are too heavy to be broken.
Charlie and I can handle a four page memo over the phone with three grunts.
Ben Graham wasn't about brilliant investments and he wasn't about fads of fashion. He was about sound investing, and I think sound investing can make you very wealthy if you're not in too big of a hurry. And it never makes you poor, which is even better.
John Maynard Keynes essentially said, don't try and figure out what the market is doing. Figure out a business you understand, and concentrate.
If the business does well, the stock eventually follows.
My idea of a group decision is to look in the mirror.
When managers want to get across the facts of a business to you, it can be done within the rules of accounting. Unfortunately, when they want to play games, at least in some industries, it can also be done within the rules of accounting. If you can't recognize the differences, you shouldn't be in the equity-picking business.
All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies.
Read Ben Graham and Phil Fisher, read annual reports, but don't do equations with Greek letters in them.
Diversification is a protection against ignorance. It makes very little sense for those who know what they're doing.
Either they're trying to con you or they're trying to con themselves.
If, after half an hour, you haven't figured out who the patsy is, then you're the patsy.
It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.
The most common cause of low prices is pessimism - sometimes pervasive, sometimes specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Stocks can't outperform businesses indefinitely. Indeed, because of the heavy transaction and investment management costs they bear, stockholders as a whole and over the long term must inevitably underperform the companies they own. If American business, in aggregate, earns about 12% on equity annually, investors must end up earning significantly less. Bull markets can obscure mathematical laws, but they cannot repeal them.
A pin lies in wait for every bubble and when the two eventually meet, a new wave of investors learns some very old lessons.
|
coyotte
Member
Username: coyotte
Post Number: 581
Registered: 12-2002
Rating: N/A
Votes: 0
|
| | Friday, May 16, 2008 - 01:16 pm: |
|
Guppy in his book "Better Trading", go'es into Diversification
He reckons most people have it wrong and your diversification should be based on Volatility/Beta and not Sectors
For eg: Short Term Trading needs High Volatility Stocks , Longer Term Trend Trading needs Medium but not Low Volatility.
Cheers
The "Sea of Uncertainty" is defeated by the nimble vessel "Probability", not the unwieldy vessel "Prediction".
|
resillent1
Member
Username: resillent1
Post Number: 464
Registered: 10-2006Rating: N/A
Votes: 0
|
| | Friday, May 16, 2008 - 02:10 pm: |
|
Coyotte
As this is a Warren Buffet thread, I'll attach a clip with some of his his thoughts on Beta as a tool for managing risk.
http://www.youtube.com/watch?v=C1LiATYSajw
|
|
Threads by Last Post Time: First
Previous
11
12
13
14
15
16
17
18
19
20
Next
Last
|
Most Popular
Links
NYSE, Nasdaq, Amex,
OTCBB, Pink Sheets
Hourly ASX updates
ETOs & Warrants
End-of-day LSE updates
What's New
Traders
Survival Kit
|
