Sunday, September 06, 2015

READ THIS BOOK: HOW BUFFETT DOES IT – JAMES PARDOE

How Buffett does it: 24 Simple investing Strategies from the world’s Greatest, Value Investor – James Pardoe printed and copyrights @ TATA McGraw – Hill year 2005

About the author:
James Pardoe is the principal attorney with Pardoe & Associates and one of today’s most knowledgeable followers of Warren Buffett. He received his JD from Pepperdine

About Warren Edward Buffett:

Warren Edward Buffett is an American business magnate, investor and philanthropist. He is the most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people. He was ranked as the world's wealthiest person in 2008 and as the third wealthiest in 2015. In 2012 Time named Buffett one of the world's most influential people.

How Buffett does it is a step by step guidebook for investing like buffett in any market environment.

My favourite Page in this book:  Page no. 28, chapter no. 4, Be Patient

Here are a few tips straight from the Berkshire Hathaway play book.

  • Head Charlie Mungo’s advice. Sit on your ass. Do not mistake activity for achievement. When it comes to investing, the opposite is true.

  • Buy only stocks that you won’t trade for five years or more. When you buy a stock, pretend that the stock market will be closed for the next five years and you cannot sell the stock, forcing you to adopt a long-term outlook.
  • Remember that “time is the friend of the wonderful business.” Do not check your investments every day or week; remember that all stocks go up and down. A better use of your time would be to keep and eye on business performance rather than on price performance.


A Small Note:
I have read this book in year 2008. I advise you to read this for MBA syllabus or else you can refer this book for exams point of view.

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