Warren Buffett Investment Guides

Being a billionaire isn’t a day’s job and one man has been able to acquire wealth and hold this position of being a billionaire long enough to be associated with all the time by investors, his name is Warren Buffett. He has been able to work with a few investment believes and decisions which are now guides for investors both veterans and newbies in the investment world. In this post, I will look at a few of this decisions made by this man.

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Never sell a wonderful company too early

Since Buffett has been investing since the 60s he invested in Disney $4 million for 5% of the company in 1966 and sold his shares in the company in 1967 at $0.48 which increased his investment by 50% but the sales was too fast as if Buffett had kept his stock there till date, he would have sold his stocks at $131 per shares. He had since believed in investing for a long term and not for short period of time.

Check the price a company is being sold and Management thereof

In 1966, Warren Buffett invested in Associated Retail Stores because it produces large earnings compared to capital employed. He got the investment because the investment was profitable and it was selling at a low price.

Focus on Tangible Assets and Current Earnings

Investments should be based on tangible assets and current earnings. If the company isn’t good enough to be invested in then do not invest. Trust your guts and trust your investment decisions, never invest in a business you are not sure of.