How to invest in stocks using warren buffet principles
We all want to become rich investing in stocks but have we ever asked ourselves what is the most efficient way to invest in stocks and create wealth? How to invest in order to get higher return?
Infact, you can become rich by following warren buffets principles.
As you all know, warren buffet is the second richest man in the world who made his fortune through investing in stocks using value investing.
So the first principles is:
You need to see stocks as an ownership in a business.
Look for and Evaluate businesses that have competitive advantages, mode around it for a long time. Evaluate businesses that has competitive advantage, and are easy to understand
Buy it at an intrinsic value.
So, approaching stocks, you need to have right mindset about it. You need to see stocks as an ownership in an business. Not a symbol ticker that goes up and down. youtu.be/yaXmmaEs-hU?t=48s UNTIL 1:23min. So stocks are ownership in a business and you need to stay with them for long time.
Second, look for companies that have competitive advantages. Companies that have mode around them. Like coca cola's mode is its taste which set him apart from other companies. Coca cola now owns almost 48% of the carbonated drink market to pepsi 31%.
So for long term perspective companies with an advantages will likely be producing higher.
And last principle, is find intrinsic value of the stock when you are purchasing. Which means finding its true value of stock of how its worth. As said in the book:
Page 67 of 819 OR 15 of PDF.
So, when buying stock first see how much it is worth. And if it is lower than what it's worth, that's when you should buy.
CONCLUSION: So given these points, when you think of buying a sock first think of it as if you are buying a business or farm or an apartment. You look at how much its going to produce. And then, what are the advantages that it has that makes it better than other businesses. And then end, buy it at an intrinsic value which is buying it cheap and selling it what is worth. If you sell it over what its worth then it would be speculation and high risk.
NOTE*: Dont worry about the outline and format. Just by reading the contents can you say this as an informative speech essay? is the topic informative?
Holt Educational Consultant - / 10,535 3447
Betoche, I can't really visualize the presentation of your speech. It's it a heavily visual discussion? From the looks of it, your essay needs to build a more informative presentation than what you have now. As bullet points that will still be developed into a formal discussion, these are effective guidelines. If this will be the speech itself, then these will not work. It needs a more commonplace explanation that will be understandable to the listener. Always assume that you are going to be addressing people without a relevant background or experience in stocks. Develop the speech from there. Don't rely too much on the supporting video presentations. Try to explain the video content as well in order to make sure that your speech will be understandable to the listener.
Thanks holt. Will consider those definately, I will try to explain it in a simpler way. However, do you think that my topic even sound informative? That was what I wasnt sure of.
Holt Educational Consultant - / 10,535 3447
Have you considered the audience that you are writing the speech for? What is the demographic of the people you will be addressing? What are their interests? Would some of them be interested in financial investments? Perhaps some of them are first time stock investors who are not yet familiar with the tools of the trade? If that is your crowd then yes, this speech is informative and should do a good job of keeping the audience interested. However, if you are going to be talking to a different type of crowd, learn what what their interests are before you write your speech. An interesting speech always takes into consideration the kind of audience and the interests of their audience. Use some examples coming from known figures to illustrate your explanation, or perhaps give an audio presentation of one of Buffet's speeches in the middle or at the start of your speech in order to wake up the audience and gain their interest. There are a number of things that you can do to make this an interesting and informative speech.