Warren Buffett – “The Intelligent Investor”


I just watched a programme about this guy and have picked up some of his golden rules for investment success. As an aside, one of his staff said “he’s uncomfortable with most vegetables”. His daughter said she’d never seen him drink a glass of water. Following his rules has lead to him delivering 20% a year growth every year for decades with successful investments in businesses that include Coca-Cola, American Express and Walt Disney.

Think independently!
I like that one 🙂

Invest don’t speculate.
It’s not a gamble, he looks at the asset itself and its return – that doesn’t include the property price but the potential yield. To quote Buffett the “fundamental earning power of the asset”. Additionally deal in what you are capable of understanding, in something with durability, in management with integrity and talent and remember nothing is worth an infinite price!

You don’t have to diversify
-stick with what you know.

The market is there to serve you not instruct you

Be a business owner

Allocate capital efficiently
Take the profits from one business and invest it in another…

Don’t get into debt

Break your own rules
I major in that

Give it away
$31 billion has gone to Bill Gates’ Foundation

So following the Buffett model I will be studying the form, betting only on handicaps, not following the market blindly, keeping in mind this pearl when looking at terrible races “don’t try to make a silk purse out of a sow’s ear, it’s difficult enough to make it out of silk”, re-investing the profits into the next race and giving it all to charity when I croak.

Posted on October 27, 2009, in Horse racing. Bookmark the permalink. Leave a comment.

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