MOST people would know that Warren Buffett is one of the world's richest men. Most would also know that he is easily the most successful investor the world has ever witnessed.
As a result, many of us would like to know his secret in investing and what makes him so successful. Many of us would like to emulate him, if not in terms of investment performance, then, at least in terms of investing style. And yet in another sense, he is not that smart. Buffett has said that you do not need to have the IQ of Einstein or understand complex mathematical formulas in order to invest successfully.
One of Buffett many realisations were that “when you find a really good business run by first-class people, chances are a price that looks high isn’t that high. The combination is rare enough; it’s worth a pretty good price.” Hence his huge investments in stocks like Coca-Cola and other large corporations which was not cheap by conventional standards proves that cheap is not always best.
Many investors have blamed the BSKL or global stock market for losses or poor returns. Many have said that the Buffett investing style cannot be successfully applied. Many investors do not realize that the real culprit of their losses or poor performance is themselves. Do not get us wrong. We are not saying that stock market and the listed companies are perfect. But part of the fault also lies with the investing style of investors and perhaps also the investment philosophy or goals. As we usually tells our participants, be open and expand your knowledge in financial education so that you create better opportunities.
As quoted by Robert Kiyosaki in one of his many books, "There are two things you can invest, time and money. Since most people do not invest time, they lose their money."
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