Warren Buffett should ask five questions before their investment rosstallanma

Buffett: you should ask five sources of his investment: the sky hunter before Warren Buffett released the Berkshire Hathaway’s annual letter to shareholders. At the same time, Buffett also wrote an article entitled "Berkshire – past, present and future". In the letter, Buffett looked back on his fifty years of investment in Berkshire, summed up his investment experience. The following are excerpts from some of the ideas in the letter. What’s the problem with "picking up a cigarette butt?" when I manage little money, it’s a good idea to pick up a cigarette butt. The main problem of this strategy is to pick up the cigarette butt is difficult to scale. This strategy is hard to work when there is more money to manage. Buffett’s teacher, Graham, proposed "cigarette butt" value investing strategy. Simply put, investors buy a bad company stock at a low price, and then return to a reasonable price. Buffett had said that it was like finding a cigarette butt on the ground, and picking it up, and then sucking it up for free. In addition, this strategy often applies only to short-term investments. Buy cheap to the poor performance of the company, it is difficult to become a strong foundation of evergreen company. The requirements for marriage partners are much higher than those of the date. Charlie Munger gave me a very simple construction of Berkshire’s blueprint: don’t try to buy a can company with very good price. Buy a good company at a reasonable price. Mergers and acquisitions, two plus two equal to? CEO often ignore the basic fact: you should not exceed the intrinsic value of the stock in the acquisition of your acquiring company intrinsic value……. With one hundred dollars for the $eighty, never make money. (even if you are a variety of consultants to tell you this is a reasonable price) we suggest that when someone tells you that 2+2=5, never forget that only 2 plus 2 equals 4. When someone tells you that the idea is out of date, zip up your wallet, take a vacation, and you can buy it in a few years. What are the disadvantages of the group company (conglomerate), which was very popular in 1960s?. CEO, a group of companies, has pushed up a growing company’s earnings to 20 times, and then issued new shares at the fastest rate to buy companies with earnings of $10. The group’s CEO then incorporated the acquired company into the financial statements. Even if the value of the acquisition and the acquisition of the company did not change 10 Fen, earnings per share will automatically increase. These CEO to prove their management ability. Finally, they promise to be able to repeat this process indefinitely, and then increase the net profit per share. Wall Street’s love for this approach peaked in 1960s. The Wall Street guys are always willing to give up the dubious, dubious means to make an ever increasing share of earnings per share, especially as the merger of these deals can create huge fees for investment banks. The auditor for the financial statements the most willing to spray group on the "holy water", sometimes even.相关的主题文章: