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Warren Buffett’s 10 Principles And Rules For Investing

Date: Sunday, June 3, 2018 7:44 PM EDT

Warren Buffett is arguably one of the greatest investors of all time. He is called the Oracle of Omaha the siege of Nebraska and from a young age he knew he would be rich. His prophecy came true and today he’s worth about 80 billion dollars. Warren would buy six packs of Coca-Cola for a quarter and sell each for a nickel. He also sold newspapers and magazines door to door. He collected and sold golf balls. And in fact he even got other kids from his neighborhood to collect and sell golf balls as well. He had all sorts of small ventures. He grew up knowing he wanted to make money. He said he loved doing business.

In 1942 he bought his first stock called Citizen Services. He said he went all in and made a good return. And I think it’s safe to say the kid had a bright future and together with his partner Charlie Munger they have created one of the largest corporations in the world. So luckily for you and I Warren has left clues as to how he became so successful. So in this video I’m going to share Ten Principles for investing that anyone can use to become rich. So whenever Warren goes hunting for companies and businesses to buy he looks at the management team first was a very talented incompetent and if so he buy shares in the business.

One of his policies is not to buy 100 percent of a company or a business but to own and non-controlling but substantial portion of the business. After all we own hundreds of companies. Who has time drawn Tobon right. Warren has invested in a vast amount of businesses over the years ranging from lollipops to jet airplanes. So the business as measured by earnings enjoy terrific economics producing profits start run from twenty five percent after tax to far more than 100 percent. Others generate good returns in the area of 12 percent to 20 percent. However a few of the businesses he has invested in have the report returns. The mistake he attributes to missteps in meeting capital allocation and evaluation of the economic dynamics of the companies and the industries in which it operated and on the other hand these missteps he attributes the poor returns are usually small blunders. The overall balance sheet so keep your mistakes to a minimum.

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