Warren Buffett learned from Benjamin Graham
Benjamin Graham had only gave out one " A+ " in 20 years of teaching and it was to Warren Buffett.
Warren Buffett took his studies and his investments seriously, he believed that your investments should be ran like a business.
Benjamin Graham believed that you should have at least 100 stocks in your portfolio for protection, so Warren started that way as well and later found out that something was wrong with that style, he later changed his style to a much more concentrated style, he would only buy a few stocks and load up on them after he did his research on each one of those companies.
Mr. Buffett believes that "diversification is for ignorant people" that do not do their research, he also believes that if people would only make about 10 business deals in their lifes then they would make much better deals, they would be much more careful.
Warren Buffett`s portfolio has had an average increase of 23% per year for the last 32 years, he only buys companies that he is proud to own and that has good management, good earnings and can retain those earnings for further advancements . He loves the company and learns all that he can about that company, he hardly ever sells the stock in that company and hopes he can buy the whole company like he did with SEE`S candy and so many others.
Mr. Buffett is the only billionaire in forbes list of 400 of the richest men in usa that made all his money solely by investing in stocks.
In 1957 Warren started a partnership with friends and family, they invested $105,000 and today it`s worth more than 20 billion.
Warren is a very concentrated and focused gentleman who said to himself that he would not make another investment until he read Benjamin Graham`s book at least 10 more times, he keeps Graham`s books on his desk until now.
Warren likes companies with predictable future earnings, that way he can calculate future value.
Mr. Buffett is known as a value investor and he waits until the time is right to buy the stocks when they are under valued but he keeps his eye on them until it`s the right time.
Warren Buffett built his empire by using other people`s money in a limited partnership with less than a 100 people, he took a 25% share of the profits, thats how he became a billionaire.
It`s a great stategy and it worked for him but it did take many, many years .
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