warren buffett investment strategies
If We Talk About The Greatest Investors Of All Time Warren Buffet Is Obviously, The Best Investor In The Whole World Ever Born Who Had Made More Than $ 85 Billion By Investment As His Profession Who Also Ranks In The Place Of Top 10 Richest People Of The World. This Article Is Not His Biography But The Investing Strategies And Learnings That Will Inspire All Readers And Help To Gain Some Knowledge. One Of The Most Famous Strategy Of World - Value Investing Is Used By Warren Buffet Which He Learned From His Teacher And Mentor Benjamin Graham. In Value Investing Strategy We Do Fundamental Analysis (About Which We Have Talked In Our Previous Articles) Of Stocks Or Companies And Then Calculates The Actual Value Of The Company's Stock And Compare It With The Market Price And When He Get It At Discounted Price He Buy It,, Hold It For a Very Long Time Until There Is a Defect In That Stock. This Sounds Very Easy Strategy But It Is Very Deep On Which Books Can Be Written But In Short To Explain This Strategy Warren Buffet Reads The Financial Statements , Financial Ratios, Annual Report And Other Statements So Carefully That He Had Said About It That " I Buy Stock Of The Company So Responsibly As If I Am Buying The Whole Company" And Besides Financial Research Warren Buffet Also Do Business Model Analysis Of The Company To understand What Work Actually Company Does To Gain Money And Will This Business Can Be Sustained In Future Or Not? This Process Is Also Important As If We Does not Know About Business Model Of Company We Will Not Be Able To Predict Accurately That Should We Buy That Stock For Long Term Or Not. Most Amazing Thing About Warren Buffet's Investment Strategy Is His Calculating Intrinsic Value Of Stock And Patience Of Holding It. If We Talk About Calculating Intrinsic Value, In Easy Words Real Value Of The Company It Is Important And I Will Tell You Reason With An Example. When We Go To Cloth Shop For Buying Clothes, When We Select Some Clothes For Us We Check The Quality Of The Cloth's Material And Determine Its Price In Our Mind And If The Market Price Of That Cloth Is Less Than The Price We Calculated By Looking Cloth's Quality Then Only We Buy It , Stock Market Also Works Like This Where We Can Calculate Intrinsic Value Of Stock By Looking To Quality Of The Company. At Last Comes The Most Important Thing Which Is Patience. It Is Easy To Say That We Should Be Have Patience In Stock Market But Actually It Is Very Difficult To Have. For The Importance Of Patience Warren Buffet Have a Quote " When I Buy Shares I Assume Market Is Closed For Next 10 Years" Which Explains About Importance Of Patience As When We Do Fundamental Analysis And Buy Shares We Think About The Long Term Future Of The Company And Stock Market Is Mainly Volatile And Risky For People Who Does'nt Hold Shares For Long Term. Patience Is Also Important Because a Good Company's Share May Rise And Fall In Short Term But If We Talk About Long Term It Is Sure That Nobody Can Stop From Increasing a Good Company's Stock. At Last As Conclusion, a Famous Indian Investor Vijay Kedia Had Said About Requirements Of Earning Money From Stock Market That First We Need Proper Knowledge To Buy Shares, Second We Need Courage To Invest Money Accordingly, Third We Need Patience To Hold It For Long Time.
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