Warren Buffett's three 'fundamentals of investing': ""With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field—not by those whose eyes are glued to the scoreboard."
He warns against "letting the capricious and irrational behavior" of stock prices make an investor "behave irrationally as well."
In addition, Buffett argues, "Forming macro opinions or listening to the macro or market predictions of others is a waste of time."
He also urges timid or beginning investors against going into stocks "at a time of extreme exuberance" and becoming "disillusioned when paper losses occur."
"The antidote to that kind of mistiming is for an investor to accumulate shares over a long period and never sell when the news is bad and stocks are well off their highs."
His bottom line fundamental advice: "Ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm."
'via Blog this'
He warns against "letting the capricious and irrational behavior" of stock prices make an investor "behave irrationally as well."
In addition, Buffett argues, "Forming macro opinions or listening to the macro or market predictions of others is a waste of time."
He also urges timid or beginning investors against going into stocks "at a time of extreme exuberance" and becoming "disillusioned when paper losses occur."
"The antidote to that kind of mistiming is for an investor to accumulate shares over a long period and never sell when the news is bad and stocks are well off their highs."
His bottom line fundamental advice: "Ignore the chatter, keep your costs minimal, and invest in stocks as you would in a farm."
'via Blog this'
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