>>Let's Learn From the New World's Billionaire Warren Buffet

by Ghazmawanie Ghazi

money...money...money...it's so funny...
in a rich men's world...wallaaa...love it... lets talk about money, things dat always in my mind..heee, sometimes only. i'm going to be a teacher, but i'm kinda interested in investment coz it makes lots of money...is it?

From $10,000 to $30 Million..How the hell he does it?? Let's try to dig out how and what he is investing in till he become the world bilao, let's checck this out first...liona.

Did you know that a $10,000 investment in Berkshire Hathaway in 1965, the year Warren Buffett took control of it, would grow to be worth nearly $30 million by 2005? By comparison, $10,000 in the S&P 500 would have grown to only about $500,000. Whether you like him or not, Buffett's investment strategy is arguably the most successful ever. With a sustained compound return this high for this long, it's no wonder Buffett's legend has swelled to mythical proportions.

But how the heck did he do it? In this article, we'll introduce you to some of the most important tenets of Buffett's investment philosophy.


Buffett's Philosophy

Warren Buffett descends from the Benjamin Graham school of value investing. Value investors look for securities with prices that are unjustifiably low based on their intrinsic worth. When discussing stocks, determining intrinsic value can be a bit tricky as there is no universally accepted way to obtain this figure. Most often intrinsic worth is estimated by analyzing a company's fundamentals.

Like bargain hunters, value investors seek products that are beneficial and of high quality but under-priced. In other words, the value investor searches for stocks that he or she believes are undervalued by the market. Like the bargain hunter, the value investor tries to find those items that are valuable but not recognized as such by the majority of other buyers. Warren Buffett takes this value investing approach to another level. Many value investors aren't supporters of the efficient market hypothesis, but they do trust that the market will eventually start to favor those quality stocks that were, for a time, undervalued.

Buffett, however, doesn't think in these terms. He isn't concerned with the supply and demand intricacies of the stock market. In fact, he's not really concerned with the activities of the stock market at all. This is the implication this paraphrase of his famous quote : "In the short term the market is a popularity contest; in the long term it is a weighing machine."(see What Is Warren Buffett's Investing Style?)

article from: http://www.investopedia.com/articles/01/071801.asp?partner=forbes-am