The essence of the analysis

The essence of the analysis

First, all investors should do their homework, but the good performance of this work does not mean getting a gold medal from the teacher. Rates are higher - they are expressed in the difference between gain and loss conditions. In the essay that opens this book, Warren Buffett says that data about the company and its history of activity indicates whether or not to invest, the availability of reliable data makes it possible to make the right decisions, and what othershave to say - the company or the media - should be ignored. In addition to studying the company's financial condition, may have a critical reading of economic policy Mr. articles. Jim Rogers, once a partner of George Soros, warned: "The clever investor learns to listen to the popular press your ear tuned to the extreme panic." An essay in the first part explain that the analysis of more than a simple consideration of the price / earnings and book value of the shares.

About the billionaire investor, when he was a youngster, said he discovered the money as "Mozart discovered music." Among his other endeavors, Warren Bachkret delivers newspapers on two routes, collecting balls for playing and selling their gyf. He later rose to the level of service machines to play billiards in the Chinese local hairdressers. Buffett was born and raised in the state of Omaha, but even tasted success, chose to stay and live there. A colleague once pointed out the advantage: "Warren, living in Omaha, away from it all, has a clear perspective and byshe looks that matter, than what is urgent or fashionable." His well-established philosophy - the result of the analyst under the direction of the conservative Benjamin Graham, the undisputed father of modern securities analysis.
After two years of apprenticeship with Graham, Buffett returned to Omaha and set up his own investment company with a capital of $ 100,000. About 30 years later, in Omaha, there were 52 "millionaire Buffett." In spite of his conservatism, Buffett in 1969, did something radical: just dissolved the partnership in the midst of a bull market, assuming that the entire market is overvalued and you can not have stocks or find any winners. He also admitted at the time: "Ideas I was like water in Niagara Falls - much more than I could ever use. Now, as if someone turned off the water and releases it with a pipette." Version investor writer cliche (writer'z block.)

Not worrying, Barfett continued to work and became one of the richest men in the United States. Oi acquired large stakes in companies, "Coca-Cola", "Geiko" and "The Washington Post Company." Control of one company, he, in fact, was by accident - it is "Berkshaer hetevey." (Berkshire Hathaway,! Ps). When he stumbled on it in 1962, it was ravaged by a textile company. Its shares were selling below $ 8, but he understood that each action by itself was 16.5 dollara working capital. The rest is history. One of the key elements of the analysis of Mr. Buffett - the company's activities in the past and the competence of management staff, which he discusses in his essay "The most important thing - the history of activity." In order to express their point of view, Buffett can play as serious things, and funny jokes, including references to Albert Einstein, St. Peter's and Kentucky Derby.