The Warren Buffett investing strategy is simple.
The crux behind it is this:
Buy great businesses at good prices.
Of course, there are more details to it the deeper you dig. But it’s nothing you couldn’t learn while getting an accounting/economics/finance degree.
I loved stumbling across the video below of Warren Buffett from Investor Center.
It is so telling is that Buffett is repeating the exact same things in interviews today.
And why wouldn’t he?
Good business principles should be timeless.
Good business principles
You can learn the most from his letters to shareholders (Amazon)
My Warren Buffett Investing Strategy takeaways:
- Don’t lose money.
- Investment temperament > Investment IQ
- You are not right or wrong because people agree with you – you are right or wrong based on facts and logic.
- Don’t worry about what a stock does – invest in a business.
- A short-term focus is not conducive to long-term profits.
- Just focus on what businesses are worth.
- You don’t have to always be buying and selling – sitting out is ok too.
- Investors/managers don’t have to use data just because they have it – don’t overcomplicate it.
- Tune out all the noise that surrounds the financial markets, focus on the fundamentals.
- Find a place to live that lets you relax and keep the market noise to a minimum.