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Crucial Reasons for Warren Buffett’s
Unstoppable Success
10
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1.He Lives by Two
Simple Rules
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1. Never Lose Money2. Never Forget Rule #1
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2.He Has the Ideal Business Partner
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Buffett teamed up with Charlie Munger in 1978, changing the way Buffett looked at stocks.
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“Charlie Munger has had a big impact on me, moving me into looking for wonderful companies at fair prices, rather than fair companies at wonderful prices”
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3.He Knows
Reputation is Vital
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Buffett bought into Wall Street investment bank Salomon Brothers
and was the only thing stopping them from closing their doors after a
bombshell trading scandal.
Famously saying this to Salomon Brothers employees:
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“Lose money for the firm and I will be understanding. Lose a shred of reputation for the firm and I shall be ruthless”
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4.He Thinks Long-term
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Perhaps no investor is more patient than Warren Buffett. He bought shares in the Washington Post in 1973 for $10 million.
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Nearly a year after his initial investment, he had endured a 20% loss on the position.
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By 2004, he had a gain of $1.7 billion...
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5.He Stays Within
His ‘Circle of Competence’
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Warren Buffett has an incredible intellect and focus. But, he also knows he can’t be an expert on everything.
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He sticks to the industries that he knows (banks, insurance, consumer goods) and avoids the ones he doesn’t.
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6.He Started Young
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Warren Buffett bought his first stock at age 11.
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He quickly became hooked on all things business, buying a paper route at 13 and even shorting stocks his teachers were invested in...
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...just to antagonise them.
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7.He Cares About Value Above All
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Buffett believes that intrinsic value estimations offer “the only logical approach to evaluating the relative attractiveness of investments and businesses.”
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This philosophy has always been the core to his investing strategy.
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8. He Keeps Emotions
and Investing Decisions Separate
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Buffett believes behaving rationally in the face of ups and downs
of the market has been the key to his investing success
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“Only when you combine sound intellect with emotional discipline do you get rational behaviour.”
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9.He Likes to Take
Advantage of Market Capitulation
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Buffett believes the biggest of investments should be made when economic downturns are at their
worst and prices are at their lowest.
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“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold.”
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“When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.”
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10.He Is Not a Fan of
Hedge Funds
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Buffett believes that if you purchase an indexed fund, you will outperform
a hedge fund due to the fees and charges involved.
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“A number of smart people are involved in running hedge funds.”
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“But to a great extent their efforts are self-neutralizing, and their IQ will not overcome the costs they impose on investors.”
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Why Would You Listen to
Warren Buffett?
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If you invested $10,000 in Buffett’s investment company Berkshire Hathaway in 1965...
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...by the end of 2016 it would be worth $162 million.
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Warren Buffett has successfully navigated the market since 1965.
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Berkshire Hathaway In Per-Share Market
Value (1964-2016) Overall Gain
=
1,972,595%
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Even taking into account the Global Financial Crisis,If you had invested $100,000 in Berkshire Hathaway in 2006...
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...it would be worth over $293,000 today.
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Would You Like Exposure to
Berkshire Hathaway?
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1. Gain Exposure to Berkshire Hathaway
2. Gain Exposure to the US and International Markets
3. Have Warren Buffett’s Skills and Experience Impacting Your Investment
Register to Learn How You Can:
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1. The Investment Overview (Product Disclosure Statement)
2. Berkshire Hathaway’s Most Recent Annual Report
3. An Interview With Warren Buffett On His Investment Strategy
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