Buffett Pdf Verified |link| — 10 Golden Principles Of Warren

A great company must possess a durable competitive advantage that protects it from rivals, much like a moat protects a castle.

Track earnings growth, revenue expansion, and return on equity rather than short-term stock chart patterns. 10 golden principles of warren buffett pdf verified

10. Determine a company's intrinsic value. Buffett estimates the total cash a business will generate over its remaining life, discounted to present value. 11. Buy at a significant discount to intrinsic value. This "margin of safety" protects against errors and misfortune. 12. Apply the "One Dollar Promise." Every dollar retained by the company must generate at least one dollar of market value over time. A great company must possess a durable competitive

Stick to businesses whose products and business models are clear to you. Determine a company's intrinsic value

"The stock market is a device for transferring money from the impatient to the patient". Buffett champions a long-term mindset, famously stating that his favorite holding period is "forever". This allows the power of compound interest to work its magic.