Towards a Successful Investment strategy of Warren Buffett-style

photo: telegraph.co.uk

Business -  Warren Buffett is known as one of the greatest investor in the history of the modern stock market. Under his leadership, the investment company Berkshire Hathaway, Inc. is now worth more than US$300 billion in profits for himself at US$60 billion.

Many investors are trying to follow the investment strategy of the fourth  richest man in the world. Understanding the principles of Buffett's investment, the investor doesn't need to spend billions of US dollars to buy a food company, household appliances or railroad company.

According the analysis of the site 24/7 Wall Street, there are several strategies that can help investors exchanges "ordinary" to invest like Buffett. These strategies  don't aim Buffett chase step, but rather to encourage investors to build wealth over the long term and help adapt to the market.

The period of his ownership of shares of a company including long enough. In the Buffett portofolio, we can see Cola-Cola, American Express Co., Wells Fargo & Co., and International Business Machines Corp.

Buffett has been an investors for a long time for these companies. Ownership of shares in the four companies accounted for 56 percent of the total value of wealth of US$116 billion as of March 31, 2014.

Here are some strategies that can be copied investors to invest like "the maestro":

1. Focus on what you know and that is easy to understand
Buffett's secrets of success primarily because he was adamant on what he knows. The main field is insurance, industrial, versatile, equipment, and railroads. It has the largest company so widely known. such as American Express, Coca-Cola, Wells Fargo, and IBM. Also Heinz, GEICO, Fruit of the Loom, NetJets, and a dozen more companies jewelry, furniture, and retail.

2. Having a long-term view
Buffett never say, it's stake in a company is to forever. He first invested in Coca-Cola in 1988, and never sell any shares of the sheet after that. Buffett also still holding American Express, despite having passed the difficult times.

3. Investing in value and the price is right
Buffett believes in value investing ad he was of the valuation techniques of Benjamin Graham. Buffett typically examines companies with low debt ownership and high return on equity. Buffett likes investing in companies that offer dividends and share buybacks.

4. The only investment management net
Buffett didn't investment in company with untested management. In fact, when buying a company out of business, he chose that management also. Buffett once said, "It tool 20 years to build a reputation and five minutes to ruin it."

5. Acting extreme at the right time
During the great depression, he took the strategy, "Fear while others are greedy, and greedy while others are fearful." This means invest with vigor when the market is broken. Buffett proven track record of rescuing companies affected by recession, such as  Bank of America, Goldman Sachs, General Electric, and Dow Chemical.

That strategy made by Buffett, so he was good to look for opportunities, and now he is successful he even became one of the richest billionaire, may inspire.