Investing like Warren Buffet
Dereck, who reacted on my post on Investing with the low dollar & high oil price, runs a blog called: The Best Stock Trading in the World. Like Dereck I also think that Warren Buffet is an investor of who a lot of people can learn a great deal of. Warren Buffet is one of the richest people in the world, but also a very smart investor.
The richest of the rich of these world only get so rich either because they started a company that did well, or they invested very smart and didn't spend a lot in their lives. Even if you don't have a lot of money, you still can become rich if you don't spend any money. Spend less than you earn is the golden key to success.
Warren Buffet started investing in stock when he was only 11 years old. With his father being a stock broker, he had easy access to a lot of information very early in life. But he also used this wisely. He began working at his father's brokerage at the age of 11, and that same year made his first stock purchase, buying Cities Services shares for $38.25 each. He sold them when the price reached $40, only to see them rocket to $200 a few years later. This taught him the importance of investing in good companies for the long term. At the age of 14, he and a fellow high school student began installing pinball machines in barber shops, and he eventually spent his take of $1,200 to buy 40 acres of farmland which he then rented to tenant farmers.
People like Warren Buffet don't come along that often, and the comparison that Dereck is trying to make on his blog and in his investment strategy is a risky one.
He is trying to beat Warren Buffet in investment return. Not really in the same time frame, but in another way. Just read his blog and you will understand what he is trying to do. Read the following posts:
Trying to beat Warren Buffet is a challenge I can tell you that. From the calculations and his track record, you might want to stop thinking about it right away. In any way, for most investors Warren Buffet will always be a great inspiration. Making so much money out of a small investment is the ultimate goal of investing. If he can do it, there is definitely room for others to follow in his footsteps.
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Posted by: Stocks | December 03, 2008 at 11:53 PM