Warren Buffett's Investment Strategy

Warren Buffett's Investment Strategy

Warren Buffett is one of the most respected and popular investors of all time.

What made him an investment legend?

What is his secret to success?

Warren Buffett's Philosophy

There are some of the most important Buffett investing principles are:

1. Look for a margin of safety- A principle of investing in which an investor only purchases securities when the market price is significantly below its intrinsic value. When the market price is below your estimation of the intrinsic value, the difference is the margin of safety. The margin of safety allows an investment to be made with minimal downside risk.

2. Look for quality- Don't invest in junk, struggling businesses. It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

3. Don't follow the crowd- Best way to invest is to ignore the crowd entirely and focus on finding value on your own.

4. Don't fear market crash and correction- When the market crashes, it's our nature to get out before prices fall any further. But Warren Buffet loves it when stock prices drop since it creates opportunities to buy at a discount. 

5. Invest for the long term- Buffett asserts, If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes. Buffett buys the stocks because he wants to own those businesses for the long term.

6. Don't be afraid to sell if the scenario changes- Buffett once said, regarding an investment, he decided to sell at a loss, the most important thing to do if you find yourself in a hole is to stop digging.