Tuesday, October 27, 2009

Warren Buffet: invest in what u know & other priceless gems

A must watch docu-info for experienced and aspiring investors alike. And remember, buy low, sell high


3 comments:

Maishinski said...
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Maishinski said...
This comment has been removed by the author.
Maishinski said...

When is low low and when is high high? that is the question.

Fundamentals dont work at NSE. Better to use as long term buffer for capital presevation.

A combinatsion of Fundamental and Technical can net in some decent gains (more quickly perhaps).

e.g. Company may be strong but if price is on downward trend - why buy? Checking the charts gives you a clue on when to get in.

A share can consolidate for years on end (price remains stagnant e.g. KQ for 10 years) in which case your capital is tied up with a non performer.

1000% profit in TEN years time may not be as sweet when you factor inflation & uncertainties. Better perhaps to have 200% average annual return that you can reinvest for compounded returns.

It's all subjective opinion but I no longer believe in long term buy & hold. Most of the time, that's a strategy reserved for suckers (think Madoff).

Lessons from Madoff: A statement is just numbers on paper. See the cash once in a while. Switch to different asset classes and avoid having your eggs in one basket.

I would call this my two cents - but its probably worth more than that.

:-)

Disclaimer: This is personal view and opinion. Not advice.