Day 2: How Does Warren Buffett Choose His Stocks? |BRK Annual Meeting Preheat
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Welcome to the Day 2 study of Warren Buffett's legend.
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Yesterday, we had a basic idea of what stocks Warren Buffet held that helps him make money.
You may have questions on what are his standards of select stocks, and when should enter into the opportunity.
The answers are in today's video, feel free to enjoy~
Today's Question: Have you learned some of Buffet's holdings management?
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I have learned the following from the video:
1. Applying the concept of "economic moat" in investing practices.
2. A great business need to have a sustainable advantage.
3. Invest companies with good manager who are being responsible to shareholders and being frank & thinking independently.
4. To be a great batman. Picking the best within your suitable circle of competence at a rational price.
Thanks @Tiger_Academy on the excellent video on how Warren Buffett selects his stocks. The key points are
1) Choose a company with a wide moat. A wide moat is like a castle with great defence around it that makes it hard to penetrate the castle. Example used was See Candies which has brand power. It can increase its prices and customers will still pay.
2) Company must have excellent Management and make decisions wisely for the good of the company. Example used was Tim Cook who has transformed Apple into the success story it is today
3) Buy wonderful companies at fair price. Do not over pay above its intrinsic value.
These are excellent pointers to take note when choosing a company to invest as taught by Warren Buffett the Legend.
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@CaptainTiger
a. wide economic moat to sustain profitability
b. strong management to lead the company in the right direction
c. buy at reasonable price - buying at wrong price can be disastrous
2.Good management that are answerable to stakeholders.
3.buy stocks at your comfort price.Dont FOMO.Buy high sell low.
@Tiger_Academy @TigerEvents @KYHBKO @SPOT_ON @CY_Ng @daz88888888 @OptionsTutor @surfer guy @MHh
I learn that
1) A Great Company has Sustainable Advantage.
It can continuously convert into profits without continuous investments.
2) Role of the Manager
The management of the target company
@Tiger_Academy
@AhGong
@MHh
@ISSEY1413
@DiAngel
Identify companies with great moat, great management and stock selling at a valuable (read cheap) price. If not at the right price, wait for it!
1.Invest on great sustainable advantage compaies.
2.Categorise company good, great& gruesome
3.Great managers are crucial
4.Great batsman, strike only when company's stock price below IV
#1 - Picking the best within your suitable circle of competence at a rational price.
#2- Paying too much for a company that's doing well financially must be a bad investment.