40 Tips to Invest From Warren Buffet (Part II)

Warren Buffet is the richest man of the entire world, let´s follow his counsels on value investing philosophy.

21. Crisis? Yes, but not for everyone.

Some companies do resist to crisis. Just watch them when economy is low because they can be wonderful opportunities to invest.

22. Manage your investments

Make a check-list before taking any decision just like plane pilots do, because the brain will get used to put aside the things which are not convenient. Using a check-list will bring you to reality and to the necessary discipline to take decisions.

23. Be humble

Humility should be part of human behaviour but it is essential to the investor because it will allow you to accept your errors in order to correct them.

24. Be calm to invest

No prevision can determine the time your investment will need to return profit. Do not use capital that you could need.

25. Diversification

"Exaggerated diversification is only justified when investors do not know what they are doing."

But diversification will dilute risk too.

26. Invest on a good brand

Investing on a well known brand means success in the long term.
Well known brand will deploy time and energy to impose themselves and success. Logically your portfolio will have a better long-term valuation.

27. Be objective in all your decisions

Learn to be critical towards your own decisions. Determine the reasons that compel you to buy or sell a stock.

28. A good record

A good record remains a good record even after a fall of 3%. The swings of the stock market in the short term can offer you beautiful buying opportunities at the best price.

29. Watch the leaders

Do not forsake the simple investment. Some values have grown steadily but sometimes they go unnoticed because often
investors do not like the simplicity and are more reassured by investing more complicated cases.

30. Work hard

Investing is about dedicating your time and working hard to attain objectives.

31. Free thinker

Stay free and independent for all your decisions. Being of the same opinion is not a guarantee of success.

32. Capital and growth

Study the companies that do not need regular investment for their development. These companies always have
sufficient reserves to ensure their financial stability.

33. Watch for overvalued stocks

Be aware as well of the market realities. An overvalued value may represent a good opportunity to sell

34. Look for small golden opportunities

Many small values which are neglected by institutional investors and the media are often very beautiful investment opportunities.

35. Accounting, you know?

Understand the business and its value will require a minimum of knowledge. Be sure to read some books so you are familiar with the language of business.

36. Be watching

Take advantage of the swings of the market to be always ready to catch opportunities that present themselves to you. Learn how to be a reactive investor!

37. Invest without precipitation

Investment takes time and careful study for each selected value. Override these rules will transform you in an speculator unable to ensure the sustainability of your investment.

38. Look for the keys of success

A company with a high growth potential has probably innovation, patents and know-how... which will ensure its success.
Try to find the keys of success of the company on which you want to invest

39. Keep a cool head

Your judgment must not be altered by the swings of the market, publications in the media and analyst opinions. Stay objective and be confident in your own judgment.

40. Do not compare

If your neighbor has made 18% profit last year, do not try to imitate him or her, but develop your own investment strategy and your own analyzes.

[Read Part I >>]