How To Profit From Stock Market: Warren Buffett

• Warren Buffett, for me, is the greatest investor I’ve ever seen.
• The way he can explain things, the way he chooses stocks, the way he profits from tough market conditions, I’ve never seen anyone like him.

• Warren Buffett has kind of been the figurehead of value investing. Value investors think completely differently from most investors.
• Most investors see bread in the market, and stocks going down & they panic & sell.
• A real value investor loves seeing stock prices go down. The reason is that stocks are pieces of businesses & you want to buy that business as cheaply as possible.
• Why would you want to pay more? For that to happen you have to love it when the stock market crashes.
• As Warren Buffett says “Be fearful when others are greedy & greedy when others are fearful”.

• It’s fair to say that we are going through some tough economic times right now.
• The good thing about this is the bad businesses get put out of business. Warren Buffett says “Only when the tide goes out do you discover who’s been swimming naked”.
• The economy needs these businesses to stop functioning. This is also bad for anyone who chooses to invest in these bad companies.
• This is why it’s so important to buy good quality businesses that are making products genuinely needed in society.

Rule 1: Never Lose Money

Rule 2: Never Forget Rule 1

Don’t lose money, be conservative, don’t overpay for stocks.

• A fool is someone who knows the price of everything & the value of nothing. How relevant is this to the investing world?
• Every day fools are studying what the price stocks are selling for & seeing if they went down a percentage point or up one.
• Investors who follow Warren Buffett though are not very concerned with price. But they are very concerned with value.
• If you know the real value of a stock then investing becomes a whole lot easier. You simply look at all of your investing options & you buy the stock that has a price way cheaper than its true value.