Saturday, April 14, 2007

Priceless Investment Advice from Warren Buffett

It's far better to buy a wonderful company at a fair price than a fair company
at a wonderful price: Warren Buffett

During the period from 1980 to 2003, the stock portfolio of Berkshire Hathaway beat the S&P 500 index in 20 out of 24 years. During that same period, Berkshire Hathaway's average annual return from its stock portfolio outperformed the index by 12.24 percentage points. The efficient market theory predicts this is impossible, but the theory is clearly wrong in this case.

The genius of Warren Buffett lies in his simplicity. See this article in Fool.com

You can also have an insight into his mind by reading his letters he writes every year to his shareholders. Go to this wonderful investment advice mine

But it is easy to intellectualize about his wisdom. Hard to follow them even though they look so simple. The trouble is that we consider investment to be rocket science. Which, it is not.

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