Friday May 20, 2022

The largest investors in the world get rich on which fglech: get inspired

Every investor examines the world on the stock, commodity or currency markets every day. Each of those who have achieved great investment in investing and have issued large pensions while using other practices in accordance with other rules. But they all follow one basic rule. One common sense is much more than a hundred investinch recommended.

Buying stocks just because they are growing is the most stupid reason in the world.
This familiar year of Warren Buffett is easy to capture all the investors who have been able to issue fair value names in the financial markets during their lifetime. And practically only because they shared their own barrel, intuition, knowledge and experience and did not listen to the advice of guilt.

One of the best, if not the most well-known investor, is certainly Warren Buffett with an overgrown party or a sage from Omaha. The first stock bought it at the age of one. After a subsequent decline and renewed growth, he sold them with a two-dollar earnings per share (bought 38 each, sold 40 USD). It was found that after the month, one share had a value of $ 200, probably had little effect on its investment. He became the best known and most likely supporter of long-term value strategies, and it paid off. According to him, the basis is to buy shares only in areas that the investor understands, those that have quality management guaranteeing growth potential, low indebtedness, good name and regularly increasing profits. Then the shares lasted as long as possible, even if their price dropped temporarily (for example, he never sold his company in the days of the event).

The first marrow of the action and despite their sharp decline is a thorn in the side of his critic. They blamed him especially at the time of the market downturn after 2000, although he avoided membership in Internet companies (he claimed that they did not understand them). His critics also disappoint him that in recent years he has been increasingly breaking his basic rules and taking more risks. His latest investment change is the purchase of shares in American iron companies.

An intelligent investor goes against the crowd
The great investor who had a significant influence on Buffett himself was Benjamin Graham. Despite his academic results, he was engulfed by the world of pensions immediately after graduating from university, and at the age of 29 he founded his first investment company. Even the collapse of the stock market in 1929 and 1932 did not deter him, on the contrary. He found that stocks are best bought when they have a low price due to their value. He practically became the father of value investments, which was then developed by Warren Buffett. Another important feature of his investment was the most detailed information about the company.

Basic rules for buying an event according to Warren Buffett

1. Regular earnings per share of the company exceeds 10% of the year

2. The company’s trademark is known around the world, the company should offer long-term services and do not have to fight the competition. Buy shares of the company, where the main factor for the decision to buy the customer is the character and not the price of the product. Avoid the actions of the company, where the price of the product decides.

3. The company has a very capable management, which serves its shares as best as possible.

4. The company has a low level of indebtedness, had a warehouse, high return on equity, high cash flow. Return On Total Capital (ROTC) over 12%.

5. Buy shares in a company that the investor understands. Not just buy shares, but imagine that you are buying the whole company, and therefore the purchase price must pay the share within a few years at the profit of the company or the growth of the price.

According to him, shares do not represent for the investor only a symbol on the price list, but according to the ownership of the company, only its own value, independent of the share price (Intelligent Investor, Grada 2007). The selection of the event consisted of similar rules as later used by Warren Buffett (known industry or company, high company turnover, low indebtedness, regular growth in recent years, low share price and unacceptable currency risk). It is not necessary to follow all the rules, but it is necessary to choose the ones that suit us and follow them.

According to Graham, the point is not to be carried away by the crowd and emotions. It is then simplified that it is necessary to buy from pessimists who underestimate the share and sell it to optimists who take the stock. The bag certainly didn’t take action for decades.

Krl speculator pull nespch?
All these methods are designed primarily for long-term, positive business. If the capital markets are really an interesting place, where even those who go their own way, even proves the complete case. Just as Warren Buffett is an idol for many long-term defensive traders, Jesse Livermore is literally a god for speculators.

Trend is friend, the market is never high enough not to buy and never too low to not be sold, maximizing profits and minimizing losses, these are the rules that shared this investment. The only problem for investors may be that he first paid several times for bankruptcy in violation of his rules (but he still managed to get back to the top).

He certainly agreed with the other mentioned traders in one thing: never follow the investment tips. Of course, his own experience helped him to do this, and he misused this mistake by all inexperienced arresters. It was enough when he recommended in some reputable day the actions of the company he owned, and the consequent crowd of hysteria took care of his interesting profit. Criticized by many, admired by many, he ended his life with his hand with a gunshot at the age of 63. In a letter to his wife, he described his life as a big mess.

He who beat two central banks
George Soros is one of the most famous financial markets. The hunter, who with his speculations managed to put on the blades of the central bank of Itlie and especially England and spend over a billion dollars on it, is another of those who, especially in his barrel, is able to understand the development of the market and take his own intuition. In the late 1960s, he founded the Quantum fund, which became one of the most successful and largest investment funds in the world.

The controversial financier, whom many consider to be the cause of several economic crises (mainly due to the economic crisis in Asia in the late 1990s), is, on the other hand, such a classic example of a rich philanthropist who spent billions of dollars on charity. He most often asks him to criticize him for criticizing the speculations he has made on them. He, too, is not infallible, and his speculation has been broken (he is mentioned in the Asian crisis, speculation about the collapse of the technological bubble, which the bag overtook a year ago). According to Soros, it is not a question of whether we are right or not, but how much we will spend when we have it and how much we will delay when we will be silent. Currently, one of his favorites is investing in environmentally friendly technologies or the production of ethanol.

Even though many people think that the basis of a hurry when investing is to have as much information as possible, know all the lessons and listen to the experiences of the best, it will never bring a hurry. All successful investors agree that the basis is to follow all the rules honestly, to tame their emotions and to follow the moods and feelings of others, instead of becoming part of the crowd.

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