Five Simple Steps to Investing Like Buffet

1. Buy businesses, not stocks
Think like a business analyst, not a stock analyst. Look into the company's prospect and management, not just the stock price. Remember, when you buy the stocks, it represents the ownership of the businesses.
2. Focus on companies with wide economic moats
Companies that have their cash flows structurally protected from competition should fare much better in an economic downturn, while also increasing in intrinsic value at above-average rates over long periods. Examples include being low cost producer, or have intangibles like patents and brands.
3. Let intrinsic value be your touchstone
The value of a business is the value of all the cash that business can generate for its owners in the future, discounted to today's terms. And since stocks represent ownership stakes in businesses, it makes perfect sense to value stocks via discounted cash-flow analyses. "Value is what you get, Price is what you pay." by Warren Buffett.
4. Always require a margin of safety
Any intrinsic value estimate is based on projections of future cash flows. And since the future is inherently uncertain, it is highly beneficial to only buy at a discount to fair value to account for that uncertainty.
5. Think independently, and be patient
To be greedy when others are fearful, and fearful when others are greedy, is some of the best advice Warren Buffett has ever given.

Warren Buffet Way of investing

INVESTING RULE #1: NEVER LOSE MONEY.

INVESTING RULE #2: NEVER FORGET RULE #1.

Quotations by Warren Buffett.

"Risk comes from not knowing what you are doing."

"When there's nothing to do, DO NOTHING."

Risk Profile EQUIVALENT to How much are you willing to lose?

Good & Affordable Stocks

Guildlines for Investment System and Finding Yours

Basic knowledge of Stocks

this is the current compilation of what i have learnt so far about stocks and some of the important technical terms that you need to know.

P/E Price/Earnings Price per share:Net earnings per share
When P/E is low, stock is undervalued & vice versa. Traditionally, P/E lies between 18-20.
If P/E<10, must do further analysis of the company before buying the stocks are it is likely to go lower.
Stocks accumulate Wealth. Bonds Preserve Wealth.
Stocks offer compounding of returns free of most taxes until you sell the stocks.
FACT:There are no ten-year periods in which stocks didn't do better than anything else.
Stocks reflect the dynamic growth & change of a country.
LONG TERM: Price Appreciation & Dividends.
Company's intrinsic value: company's worth when its ASSETS, EARNINGS, DEVIDENDS, OUTLOOK & MANAGEMENT are all taken into account.
Intrinsic value a reflection of Stock price.
If intrinsic value far above stock price, buy it, or vice versa.

Market Capitalization is the product of PRICE OF STOCK AT GIVEN TIME and AMOUNT OF SHARES OUTSTANDING.

• Large Cap: $10Billion and above-Low risk
• Mid Cap: $2Billion to $10Billion-Intermediate risk
• Small Cap: $500million to $2Billion-High risk

Paying who First?

reference to Rich Dad Poor Dad

Why the Rich gets Richer & Poor gets Poorer

reference to Rich Dad Poor Dad