Warren Buffet's Tenants
--> Never invest in a declining business
--> Invest in a business your understand
--> Cash flow is king
--> Buy shares after prices fall when you can
--> Access the company problems are temporary
--> CEO of Coca Cola maximized both the growth of product and rewards
growth brought to the shareholders
--> Pessimism is your friend, euphoria the enemy
--> A stock split is not useful for a long term investor
--> Invest with CEO’s who have a good track record will help you to get
superior returns
--> A good manager should horde the basics well
--> Buying a business without good management is like buying Eiffel
tower without an elevator
--> Do not sell a good stock for a small profit
--> Ignore all and other prejudice when evaluating those with whom you
should invest
--> Have patience, don’t swing is he
--> Don’t lose focus when disaster strikes
This could be a blessing in disguise (buying opportunity/business
opportunity)
-*Avoid companies that invest heavily, in Denvahrey (Eg: Enron, World
cons, Freddee wkic, AIG, Bear Sterns, Lehmgn, Bear sterns, Lehman Brothers, Fannier mae)