Warren Buffett Earns Money
Warren Buffett is often called the "Oracle of Omaha" or the "Sage of Omaha" and is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth. His 2006 annual salary was about $100,000, which is small compared to senior executive remuneration in comparable companies. In 2007, he earned a total compensation of $175,000, which included a base salary of just $100,000. In 2008, he again earned a total compensation of just $175,000, which included a base salary of $100,000. He lives in the same house in the central Dundee neighborhood of Omaha that he bought in 1958 for $31,500, today valued at around $700,000. When Buffett spent $9.7 million of Berkshire’s funds on a private jet in 1989, he jokingly named it "The Indefensible" because of his past criticisms of such purchases by other CEOs.
How Warren Buffett Earns Money?
By Sonika Gandotra
Ever wondered as to how did WARREN BUFFETT managed to make so much money from stock market where some keep making losses and some never enter the stocks. The secret lies in his investing style, what we call it as Value investing. I believe that you can also become an investor like warren Buffett if can follow these guidelines.
Photo: gfn.com
-Don’t target just stocks, look at businesses. How a company performs is key to its stock market performance. You must know the track record of a company before you invest in it."Price is what you pay. Value is what you get."
-We have often heard of people suffering heart attacks when markets crash. Well, Buffett advocates a sound temperament for stock market success.
-Prices keep changing. Don’t get worried by the ups and downs. Investing is all about creating wealth. It’s important to understand the value of a stock than its price.
-A proponent of value investing, he believes that one must take decisions on his own. He doesn’t believe in listening to analysts or brokers. The best investing decisions come from oneself.-
-Avoid hi-tech, complex businesses. Look for businesses that are set to diversify and grow.
-Never be disappointed when markets fall. Take it as a buying opportunity. Buffet says one must have lesser number of investments with more money in each lot.
-Patience pays. one must not worry too much about the price of the stocks. What’s more important is the nature of business of the company, earnings capability and its future potential.
-Never be disappointed when markets fall. Take it as a buying opportunity. Buffet says one must have lesser number of investments with more money in each lot.
-He advises to avoid diversification. Invest in companies with sound business models. Choose a few good ones and stay invested, it will give you the benefits.
-Invest in businesses with great management. Always keep a track of the management of the company. The top decision makers have a lot to do with the company’s performance.
-Doing nothing pays at times! One must not jump at price fluctuations and take impulsive decisions.
-Buffett advises to be fearful when others are greedy and greedy when others are fearful. Buy when people are selling and sell when people are buying.
-A sound business, strong management, good fundamental and low stock price should be a must-buy.
-Try to ignore stock charts, says Buffett. They may not give the right indicators. A stock which may have done well earlier may not do so in future.
-Good investors never rush to make money. They give time, thought and work on investment decisions. The mistakes that others make should be a lesson for you.
Finally, a famous quote from Warren Buffett which says "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well."
Author is a professional blogger and and is a fan of Warren Buffett for his investing style. She also maintains a very famous blog on WARREN BUFFETT. Visit his blog http://www.warren-buffett-blog.blogspot.com
