Warren Buffett’s investment strategy
What is Warren Buffett’s investment strategy? Have you ever wonder about that? He is a believer in the “Value-Based Investing” model
Warren Buffet is a believer in the value-based investing model. He has long held the belief that people should only buy stocks in companies that are SSG: Solid/Strong/Growth: show solid fundamentals, strong earning power, and the potential for continued growth.
Buffett looks at the companies in a holistic view rather than focus on the supply and demand of the stock market. He looks at metrics like: company performance, company debt and profit margins to find so call “cheap” companies to buy in and hold.
There is a famous Value Investing book named The Intelligent Investor (The Definitive Book on Value Investing) by Benjamin Graham. Warren Buffet called it “By far the best book on investing ever written.” The greatest investment advisor of the twentieth century, Benjamin Graham taught and inspired people worldwide. Graham’s philosophy of “value investing”—which shields investors from substantial error and teaches them to develop long-term strategies—has made The Intelligent Investor the stock market bible ever since its original publication in 1949.
Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.
Vital and indispensable, The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.
Buffett follows Benjamin Graham school of value investing which he looks for stocks with prices that are low based on their growth. He invest in the business, not just stocks. He value and analyze the business behind this stock. He has a forward looking vision to identify where this company is going, not just where it went and where it is at currently.