That is for every dollar spent how much am I getting back?
- The key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.- We look at the economic prospects of the business, the people in charge of running it, and the price we must pay. Indeed, we are willing to hold a stock indefinitely so long as we expect the business to increase in intrinsic value at a satisfactory rate.- Don’t watch the ticker: In investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.6.
Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value.- It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.- Lethargy bordering on sloth remains the cornerstone of our investment style- In investing, just as in baseball, to put runs on the scoreboard one must watch the playing field, not the scoreboard.5.
THE GOAL of investment:- Directly owning a diversified group of businesses that generate cash and consistently earn above-average returns on capital.
"In the short run, the market is a voting machine but in the long run it is a weighing machine." In fact, delayed recognition can be an advantage: It may give us the chance to buy more of a good thing at a bargain price.- Sometimes, of course, the market may judge a business to be more valuable than the underlying facts would indicate it is. Sometimes, also, we will sell a security that is fairly valued or even undervalued because we require funds for a still more undervalued investment or one we believe we understand better.- "As time goes on, 1 get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes.- An investor needs to do very few things right as long as he or she avoids big mistakes.- Whatever the outcome, we will heed a prime rule of investing: You don't have to make it back the way that you lost it.- Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.4.
Buy a stake in the company as if you own a business: - first, try to assess the long-term economic characteristics of each business; second, assess the quality of the people in charge of running it; and, third, try to buy into a few of the best operations at a sensible price.
The definitive work concerning Warren Buffett and intelligent investment philosophy, this is a collection of Buffett's letters to the shareholders of Berkshire Hathaway written over the past few decades that together furnish an enormously valuable informal education.
The letters distill in plain words all the basic principles of sound business practices.
I don't have much domain knowledge in Finance and thought how I will be able to understand the jargon. A Company is the sum of its management:- Directors therefore must be chosen for their business savvy, their interest, and their owner-orientation - Owner like attitude of the directors- The outside board members should establish standards for the CEO's performance and should also periodically meet, without his being present, to evaluate- Too often, directors are selected simply because they are prominent or add diversity to the board.
One read later I can say that I already understand some of the things a little bit better. You might consider them spoilers but there are no spoilers in non-fiction. That practice is a mistake.- An owner on the board should be the most effective in insuring first-class management.- Better managers make better company –One of the point buffet emphasized was to attract and keep outstanding managers to run our various operations.