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
{ 9 comments… read them below or add one }
Very interesting I like the way he buys cars that are hail damaged we just bought a new car whoops lesson to be learnt there.
You will know what to do when it’s time to trade that one in now Phil!
I love Warren Buffet’s simplicity and frugality. I admire his long-term approach to everything he does – investing, buying goods, relationships. Can’t believe he’s never had a calculator though!
He probably couldn’t find a calculator with enough zero’s on it Lina
Yes Mr Buffet is a legend (along with his sidekick Charlie). He’s man enough to admit his mistakes (in letters to shareholders) and confident enough to back his principles at every turn. Ever since the Global Financial Crisis it seems his profile has just sky rocketed.
He is certainly one of the more ethical men of big business David, that’s for sure.
K.I.S.S. – Warren Buffet’s is a remarkable story, and his advice (as per the vid) is an exemplification of keeping it simple…. and this applies not only to the field of stocks and shares but to IM endeavours too.
Trying to keep up with fads and fashions is too volatile at times, although it is a good strategy to keep an eye on the trends that may have longevity.
Common sense, common sense!
Hi Sean,
It’s great to see a man of his standing to be living a normal down to earth lifestyle. He has his feet on the ground and he has not lost touch with reality. Something I possibly couldn’t guarantee if I had his kind of money.
I see that Warren Buffett owes his success to a simple lifestyle. His common sense thinking matches his down to earth living. I hope some of his wisdom rubs off onto me, by reading and continuing to follow this article series. Hopefully in time I’ll also learn how to make successful Stock Market decisions.
Hi Sean,
Warren Buffet has 40 billion dollars? Wow! This is incredible and even more so because of the kind of man he is. The fact that he can buy anything that money can buy and he doesn’t let it go to his head is astounding.
The building isn’t even named after him? This man is a very humble man. His house, his car? Amazing.