April 15th edition of Outlook April has a cover story on Warren Buffett. Raamdeo Agarwal and Abhishek Dalmia share their thoughts on Warren Buffett and his investing style. Here are key thoughts.
Five Lessons from Buffett - Raamdeo Agarwal
- Price is not value. A good company may not necessarily be a great stock at every point.
- Get the business right. A bad business always outlives good management.
- Get the management right. Judge not only competency but also intent, and if in doubt, pass.
- High quality patience. Buy as if your holding period is forever, it could well be.
- Investing is not a perfect science. There will always be mistakes but stand by your core principles.
Raamdeo Agarwal also strongly recommends reading Warren Buffett's 2007 Letter to Berkshire Shareholders. Here is the link.
Five Lessons from Buffett - Abhishek Dalmia
- Find your edge, hone it. Unless you know something better than the others, the dots won't connect.
- Don't torture numbers. Spreadsheets have no qualitative inputs, so squeeze them, but not so hard.
- Check, double check, recheck. You are better off, with managements that have more than a plan.
- Margin of Safety. If you buy anything cheap enough, it is almost hard to lose money.
- Think things through. Run through your investment checklist again and again.
Reading the entire article is surely a good idea. Lot of good thoughts.
Regards, Rohit
Credits : Outlook Profit, April 15, 2011 Edition
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