How Warren Buffett Does It

November 21, 2014

How Warren Buffett Does It

Choose simplicity over complexity;

Make your own investment decisions;

Maintain proper temperament;

Be patient;

Buy businesses, not stocks;

Concentrate your stock investments;

View market downturns as buying opportunities;

Take a close look at management;

Practice independent thinking;

Stay within your circle of competence;

Understand Mr Market and the Margin of Safety;

Be fearful when others are greedy and greedy when others are fearful;

Read, read some more and then think;

Avoid the costly mistakes of others.

Source: These pointers are culled from the book How Warren Buffett Does It by James Pardoe
Recommended reading:
How Buffett Does It: 24 Simple Investing Strategies from the World’s Greatest Value Investor (Mighty Managers Series)