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Few investors have been successful at a larger scale than billionaire Warren Buffett. Few people have captured the imagination of other investors in the exact same way thanks to the way Buffett freely and clearly shares his investment wisdom.
What are the stocks?
In this year’s letter Berkshire Hathaway Shareholder Buffett said he views the stock as “”.As partial ownership of the company”.
So, while traders view stocks as numbers or paper paper, Buffett considers them as stocks in the business. If he doesn’t want to own the entire business, why would he even buy a small stake on it?
The fact that stocks have prices that can distract many investors is that many investors are often the ones who ultimately consider the stocks in terms of price alone.
Buffett’s approach is to view the market as a mechanism for buying and selling your stocks If you do that Any trading date – but no obligation. He says if the market is closed for years, if it doesn’t bother him, if the market is closed.
Company evaluation is important
He gives warnings against confused prices –“What you pay” – with value – “What you get”.
Warren Buffett believes there is no need to make good investments at a cheap valuation. But at least that is “Attractive”.
I’ll stick to what you know
As Buffett said in this year’s letter, “No businesses are easy to understand”. That’s why he says it’s important for investors to stick to their own.A circle of ability”.
This may include assessing the quality of the company’s current management team, but it is important to include evaluations of business models and operations.
why? Buffett says, “I’m trying to invest in such a great business that idiots can do them. Because sooner or later, I will”.
Compound interest increases in the long term
Buffett’s stock preferences are:Forever”. He is the epitome of a long-term investor.
When he makes money from stocks in the form of dividends or capital gains, he will not pay them as dividends to Berkshire shareholders. Instead, Berkshire reinvests them.
This simple yet powerful financial technology (known as compound) can be used by small investors.
Since 1965, Berkshire’s market value per share has reached 19.9% per year. The long-term approach is very useful here: the overall benefits of that period have been amazing 5,502,284%!
No action is required, but please don’t touch it
For years, Buffett’s quote above about stock market closures shows that he can be willing to sit down to do nothing for a long time.
However, when he finds an opportunity he likes, he tends to act decisively.
I like many investors apple (NASDAQ: AAPL). The market it operates is huge and could grow. Its powerful brand, unique technology, unique design, popularity and installed user base are all assets.
Sticking to the circle of capabilities, Buffett watched Apple for decades without investing. He was the first to invest within 10 years.
He invested in a big way, investing more than $30 billion in Apple stocks. It is Berkshire’s biggest holding and has solid profits.
However, Apple’s net profit has declined over the past few years. Factors such as increased tariffs and low-cost Asian telephone rivalry pose continuing risks. Warren Buffett has significantly reduced his Apple stakes.
