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Wednesday, January 23, 2008

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Hi,
Regretless of stock market is a bullish or bearish, Mr. Warren Buffett would only buy equity base on his strict principle. Berkshire Hathaway did not always have the change to buy Stocks of the business they like under its net asset value. The reason may be there are too many speculators in the stock market.

Warren Buffett would read hundreds and hundreds of annual reports every year, He would value the company base on what he understand, if the company have favorable long-term prospects, is it Operated by honest and competent people and only buy them at a very attractive price.

Warren Buffett always looks at the business and not the stock price. Mr. Warren Buffett famous quote: "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." Warren Buffett also said that when buying stocks you are not buying just a piece of paper you are buying an interest in the business. You own the business not just a piece of paper.

CNBC Buffett Watch What Would Warren Buffett Do? - Timeless Strategies report that the stock market continue to fall, but Mr. Buffett is a long-term investor, who invest in solid companies selling at a discount, as he always does. Report also said that; Today's market environment may not be actually generating any real opportunities for Mr. Buffett.

The Main concern is not if the stock market creates any opportunities but always remember Mr. Buffett Rule No.1: Never lose money. Rule No.2: Never forget rule No.1. Don't just buy stock just because there are cheap or that is a bargain. Learn from Warren Buffett the billionaire’s investor look for good business that you can understand and you may want to buy them a fair price than a fair business at a wonderful price. The stock market now may give us the opportunities but always remember Mr. Buffett quotes and it will keep you safe and give you a sound investment.

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