Investment Classics

Peter Lynch: Horizon Matters Most When Talking about Market Timing

The market itself is very volatile. We’ve had 95 years completed this century. We’re in the middle of 1996 and we’re close to a 10 percent decline. In the 95 years so far, we’ve had 53 declines in the market of 10 percent or more. Not 53 down years. The market might have been up 26 finished the year up four, and had a 10 percent correction. So we’ve had 53 declines in 95 years. That’s once every two years….
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Warren Buffet: Take care of your mind and body, and enjoy life

In the video “Becoming Warren Buffet” filmed by HBO, Warren Buffet made an analogy to tell the young people need to take care of mind and body.  “Let’s say that I offer to buy you the car of your dreams. You can pick out any car that you want, and then when you get out of class this afternoon, that car will be waiting for you at home.” As with most things in life, Buffet says there’s just one catch:…
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Warren Buffet and Charlie Munger criteria for selling a company or stock

This is excerpt from Bershire Hathway annual meeting in 2000 regarding to the criteria for selling a company or stock. Actually, Buffet gives his clear opinion that buy and hold strategy for wonderful business.  AUDIENCE MEMBER: Yeah, my main question is this. Much has been written by you, and a lot more by other people, about your criteria, or the criteria you use when you make a purchase of a company, either in full or in part.   But almost nothing…
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Warren Buffet: about Management, moats, and the certainty of future earnings

This is excerpt from Bershire Hathway annual meeting in 1999 regarding Management, moats, and the certainty of future earnings from Warren Buffet and Charlie Munger The moat and the management are part of the valuation process, in that they enter into our thinking as to the degree of certainty that we attribute to the stream of income — stream of cash, actually — that we expect in the future and the amount of it.   I mean it is, you know,…
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Berkshire Hathaway Shareholder Meeting in 2012

Did you believe the CEO of any financial organization can also be the chief risk officer. Does the future ceo will be chief risk officer? I do believe CEO of financial organizations should also be chief risk officer. I am the chief risk officer of Berkshire. My successor will have the same responsibility, and we will not select who does not have the ability. It is not an impossible job. Berkshire can act in speed that is rare among corporations….
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