Warren Buffett is a world-famous investor, and his investment philosophy is an inspiration to many. Below are some of Warren Buffett's key investment principles.
Understanding Economic Contradictions
: Warren Buffett evaluates the fundamental value of companies and prefers long-term investments. He focuses on the real value of the company, unaffected by short-term fluctuations in stock prices.
Economic differentiation
: Warren Buffett believes that a company's economic differentiation, or competitive advantage, is important. This can manifest itself in patents, brands, cost advantages, etc.
Buy a good company at a low price
: Warren Buffett believes that it is important to buy good companies at low prices. He seeks long-term investment returns by purchasing high-quality companies at undervalued prices.
long term investment
: Warren Buffett prefers long-term investments and has a long-term affinity for the companies he invests in, as he says, "What we want to own is eternal love."
Avoid if you don't understand
: Buffett makes it a rule not to invest in industries or companies he does not understand. He values a thorough understanding of the companies and industries in which he invests.
Focus on company value, not paper income statements
: Focus on the long-term value of the company, not short-term fluctuations in stock prices. Through this, we aim to make stable investments that are not subject to the short-term ups and downs of stock prices.
Investment according to asset market trends
: Warren Buffett does not make investment decisions based on changes in the asset market, but rather invests by considering the fundamental value and long-term prospects of the companies he invests in.
These investment philosophies are the core principles that Warren Buffett has followed on his path to becoming a successful investor. However, because investing always involves risk, detailed research and careful judgment are required before investing.