The Bull Hunters Guide

Glad to have you with us again. We’ve been discussing the wisdom of Warren Buffett and why he’s a smart guy because he likes common sense investment options.

To continue this subject, we’re going to start covering specifics and get into some things you can learn from applying his strategies to your investment portfolio.

Because of the aura Warren Buffett exudes in the media, there’s legions of drones who worship his every move and copy them exactly. While you may see some success this way, it’s ultimately counter-productive and just plain foolish if you don’t realize what the gentleman is doing, and why.

Making Money The Warren Buffett Way

Warren Buffett makes his money by following what he thinks and sticking to the basics based on his own careful observations. You should do this as well by using your mind - and not his, when choosing to invest.

Warren Buffett - The Worlds Greatest Money Maker Pt2

Of course, The Omaha native has good investment strategies, so you should make a conscious effort to learn from them. A simple summarization of Buffett’s stock market philosophy can be found in a humorous and blunt explanation he gave in 1987. Basically, he said, “I’ll tell you why I like the cigarette business. It costs a penny to make. Sell it for a dollar. It’s addictive. And there’s fantastic brand loyalty.” Does that really need any further explanation? The concretes have changed, but the basic idea applies to his entire approach towards investments.

Since he doesn’t jump at rapid changes, Warren Buffett has cultivated a sense of patience that could only try the nerves of the most stout investor. There’s a golden rule to his methodology, in that he’s totally ruthless when it comes to persistence.

If you’re going to start making money in a way that’s guaranteed, you’re going to have to do it the slow, hard - but successful way of investing slowly in timeless industries and waiting it out.

That’s all the time we have for now but part four of the wisdom of Warren Buffett is only right around the corner! While you’re here, read other entries on how your can improve your investments and develop a better success mentality for investing.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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In part one of the wisdom of Warren Buffett, we took him off his holy pedestal and brought him down to our level, now we’re going to begin explaining why this sort of treatment is exactly the kind of thinking that drives Warren Buffett’s investment decisions.

In the highly volatile and sometimes loopy world of global markets, Buffett is the champion of the pursuit for common sense stocks.

As a normal man, Warren Buffett looks at things realistically. He doesn’t paint big pictures, wear rose-colored glasses, think outside the “box”, act as the black sheep of the herd, or engage in any other number of investment clichés. In the end, these things are only gimmicky tropes.

Warren Buffett - Keeping It Simple

For several decades, a man from Omaha decided to follow what made the most sense to him by pursuing basic goods that are affordable and ingrained in everyday life. He invested in products and services that are pretty simple by any standard, but represent crucial elements that we may take for granted on a daily basis. Razor blades, bath soap, soft drinks, auto insurance, batteries - we all deal with this in our daily lives, and that’s exactly why Warren Buffett pursues them intently.

Warren Buffett - The Worlds Greatest Money Maker Pt1

Basically, one of the cornerstone principles behind Buffett’s effective strategy is to put investments into companies that will provide long-term returns. He doesn’t deal with fads or sudden technology surprises that are beautiful and rich today and totally obsolete and worthless tomorrow. To frame this concept, the man once said the following words if wisdom, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

It’s extremely simple, and we’ll continue to tell you why Warren Buffett is a genius of common sense in future entries, and provide a few examples. For now, we’re wrapping things up. Don’t go anywhere - there’s plenty of other series here to read to help you find out intelligent and exceptional investment strategies.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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We’re glad to have you back with us! We’re going to be discussing that most impressive giant of stocks, the unstoppable colossus of investment fortune, the shining avatar of unbelievable success, Warren Buffett.

To get gets started, we’re going to strip him of his halo. Warren Buffett is just your average man. Nobody intrinsically special, he’s basically like you or us in that he’s a human being doing his best to make good decisions in this crazy but wonderful global economy.

“How can you say that!?! Look at his successful portfolio!!”, you may be exclaiming right now. It’s easy. Buffett is an average man, yes. Which is both true and an absurd claim to make. Is that even possible? Most definitely. As an ordinary human being, Warren Buffett put forth the hard work and patience necessary to become extraordinary by believing in common sense.

Warren Buffett - How To Read Stocks

Called the Oracle of Omaha, there’s no mystical soothsaying with this man. He doesn’t deal with advanced scientific systems, or highly complex abstract numerical formulas. Not one to cloud his vision with smoke and mirrors, Warren Buffett made a sage out of himself by paying attention to basic human nature and mustering the unbreakable willingness to pursue a very simple and mundane path for investment potential.

Most investors today buy into all sorts of incredible investment contraptions, hoping to capitalize quickly due to high-risk payoffs. There are so many investment methods and stock pursuit options, it can make your head dizzy!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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Carpe Diem! Sieze the day! It goes without saying that you want to make the most out of your investments. You might be carefully observing the pros at work and trying to incorporate their tactical, thoughtful, patient behavior into your own decisions in order to do this. However, you should never simply follow a person’s example.

Investment parroting doesn’t reflect the unique dynamics of your particular situation, and most importantly, it does nothing to take advantage of your capable and intelligent mind. When you look at stocks, don’t stop to wait just because Warren Buffett is pondering his next move. Despite being a genius, he’s still just one man. He definitely doesn’t know the opportunities that are available to you, and can’t use your eyes to determine profit waiting to happen.

Seizing Investment Opportunities

If you want to make a killer investment with a huge return, then sometimes the best course of action is to seize opportunity. Methodical analysis is an extremely important element of determining market conditions.

However, there is a point where you need to simply choose to take that jump and pounce on a future profit. That’s all there is to it. You see the potential in something, and so you decide to get up and grab it!

If you need an example, take Google for instance. Or Microsoft. A lot of investors in the past are really beating themselves on top their heads today knowing that they could of invested in these fantastically successive companies that saw immense profits. Instead, this players decided to wait it out and see if things were to change even further before taking the “risk” to make a firm decision. In the end, they lost out.

That sort of thing serves as an exceptional example on how you should always complete your research homework on time and use it for making good on your analytical efforts. It’s a good idea to observe the market before committing to a decision. Haste can kill profit. However, if you wait, you may miss golden opportunities.

Keep An Open Mind

In the end, a successful investing mentality is simple. It’s all about keeping your mind open to new things, staying perceptive, and incorporating flexible thinking into your investment decisions. That’s it.

It’s different for everyone however, but just work at staying away from trope psychology and the “follow the leader” pace that causes the financial demise of many unsuccessful investors. Be confident in yourself! Your mind is your best asset, so make your financial intelligence work for you.

Thanks for reading! Hope you enjoyed the success mentality for investing series, and gained some valuable insight on how to improve your own investment making decisions. See you next time for a 7 part series focused on investment magnate - Warren Buffet.

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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Greetings once again, and thanks for returning for another exciting entry on developing a success mentality for investing. We’ve been covering the ways in which the most successful investors look at the market, and the things they pay attention to when determining risk and value.

With so many players in the stock market, it’s easy to feel lost among a tide of people making major choices on a daily basis. You may be wondering how they all factor into the values of companies, and what their behavior does when it comes to choosing investments for yourself.

Acting On Stock Market Trends

One of the things taught to us early with investing is to be original and pioneering, to act against trends, think outside the box, and beat your own path. If stocks are being snatched up, you should sell, sell, sell, throwing yours to the market to obtain immense profit. If people are selling theirs at a loss, then you should work quick to snatch them up.

There’s value in that behavior, but it’s not a sealed deal for success. Rather, it’s just another investment strategy, and one that is dependent on constantly changing factors that the most successful investors evaluate on their own terms. When it comes to stocks, sometimes it is a good idea to follow trends and stick with the herd.

For example, if a stock is falling, waiting it out before making a purchase may be a good idea. Others will flock to it in the hopes of realising profit, only to see that it continues to fall and gain back a small amount of value. You, on the other hand, decided to wait until the stock hit the bottom, so that your investment gained a considerable return when a portion of the stock’s price returned.

The basic principle at work here is that the market is flexible, and so there are many opportunities that exist beyond what people have come to expect. It’s simply a matter of learning to evaluate performance on your own terms and not by what “common sense” strategy told you.

That’s it for the sixth chapter. We now have one more to go in this series detailing how you can employ effective thinking for making your investments successful! Stay tuned for more next week!

Sean Rasmussen
The Bullhunters Guide
Universal Wealth Creation © 2004 - 2010

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