5 key money lessons on value investing one can learn from Warren Buffett
Warren Buffett has built his reputation not only as a successful investor but also as someone who has profoundly simplified the art of investing by sharing his key insights through his lectures, speeches, interaction with the Berkshire Hathaway shareholders, and also through his annual letters with shareholders. The more one tries to read between the lines of his letters, the better it appears. Here we try to recapitulate some of the key money lessons he has shared with the investors in the recent past.
ALSO READ | Warren Buffett accidentally calls Greg Abel 'Charlie Munger'; netizens say ‘they were incredibly…’ 1. Do your own research: He believes in doing your own research. He likes to do analysis on his own by reading all financial statements.
The stock he buys, he does not want to sell often notwithstanding the recent stake sale of Apple. He said that you should buy companies which even a fool can run because someday a fool will. 2.
Power of an economic moat: He is also fond of investing in the stocks of companies which have an economic moat around them. This means the companies with strong competitive advantage over competitors are likely to grow in the long run. “Great businesses are not all that common, and finding them is hard.
Unusual factors combine to create the moats…" wrote Bill Gates in a 1996 article published in Harvard Business Review (HBR). 3. Investing is simple: He is one of the few investors who often asserts that investing is simple and it is unnecessarily complicated by some.
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