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
{ 4 comments… read them below or add one }
Hello. My wife and I bought our house about 6 months ago. It was a foreclosure and we were able to get a great deal on it. We also took advantage of the 8K tax credit so that definitely helped. We did an extensive remodeling job and now I want to refinance to cut the term to a 20 or 15 year loan. Does anyone know any good sites for mortgage information? Thanks!
Mike
Hi Mike,
If you are in Australia, it’s probably a good idea to take a look at mortgagechoice or someone similar. These guys work with many of the top lenders and can give comparison rates etc. to help you find a good deal. Feel free to also check out my other blog Property Options Australia. There may be some information that interests you there.
“Totally ruthless when it comes to persistence” – a good motto or aim for me. I like Bill Gates comments about him in the vid – says something about why he goes for the simple.
Invest don’t speculate – an important distinction. Removes the gambling aspect to a great extent.
All those people who we see as being the hot stock traders (the Gordon Gekkos) and none are as rich as Buffet! Says something that!
Gawd 10 billion in Coca cola shares!
Hi Sean,
I love that he’s totally ruthless when it comes to persistence. 20% return on investment year after year. Unbelievable. Who does their own tax return at 13? Even as child running those businesses, he was something special.
Thanks for sharing this Sean. I’m really loving this series.