Monday, August 13, 2007

Warren Buffett's secrets of success for Investors

Warren Buffett, Chairman of Berkshire Hathaway, is arguably the world's greatest investor and the third richest man with a net worth exceeding $52 billion. He is also a great philanthropist: last year he declared plans to give away over $37 billion in charity, to the Bill & Melinda Gates Foundation.

Here are some of his gems of advice for investors who look at the stock market to make a fortune, culled from various publications, his speeches and writings:

• 'Never invest in a business you cannot understand.'
• 'Always invest for the long term.'
• 'Remember that the stock market is manic-depressive.'
• 'Buy a business, don't rent stocks.'
• 'Price is what you pay. Value is what you get.'
• 'Stop trying to predict the direction of the stock market, the economy, interest rates, or elections.'
• 'I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.'
• 'Wall Street is the only place that people ride to in a Rolls-Royce to get advice from those who take the subway.'
• 'Buy companies with strong histories of profitability and with a dominant business franchise.'
• 'It is optimism that is the enemy of the rational buyer.'
• 'As far as you are concerned, the stock market does not exist. Ignore it.'
• 'The ability to say 'no' is a tremendous advantage for an investor.'
• 'If you're doing something you love, you're more likely to put your all into it, and that generally equates to making money.'

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