10 Golden Rules for Investing !!!

I

iqnashik

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To All Members,

Warren Buffet's 10 Golden Rules for Investing !!!



1 Never invest in a business you cannot understand.
2 Risk can be reduced by concentrating on only a few holdings.
3 Stop trying to predict the directions of the stock market, the economy, interest rates or elections.
4 Buy companies with strong histories of profitability and with a dominant business franchise.
5 Be fearful when others are greedy and greedy only when others are fearful.
6 Unless you can watch your stock holding decline by 50% without becoming panic stricken, you should not be in the stock market.
7 Do not take yearly results too seriously. Instead, focus on four or five year averages.
8 Focus on return on equity, not earnings per share.
9 Calculate "Owner Earning" to get a true reflection of value. Look for companies with high profit margins.
10 Always invest for the long term. Does the business have favourable long term prospects?
 

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