Warren Buffett - How to Identify a Good Investment

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If you had to sell short a member of your class, and you had to pay ten percent of their income, you would look for certain shady character traits. Think about the person that you would go long on and the type of person that you would go short on, and then try to become the best person you can if you want to be successful.

Nebraska Furniture Mart will do more than $230 million in sales, which is more than any other single furniture store. It was started by an immigrant who started it from nothing, worked 7 days a week, can't read or write, and she built it to wear it is today. If you can find a great business that is run by someone like that, then you will make a lot of money.

Any good investment idea can be summarized in a single paragraph. You must be able to remain within your circle of competence. It doesn't matter how large the circle is. What matters is that you stay within the circle. You will do much better than someone who understands five times as much as you, but who steps out of his boundaries sometimes. Then you want competent and honest management running the business. Ideally, you want a business that is so great that even an idiot can run it, because eventually one will. These types of businesses are so hard to find that you shouldn't really sell it because it is too hard to replace. It is almost always a mistake to sell a great business just because the price is a bit too high. The price might keep going up and you'll never get a chance to own it again.

Gillette is an example of a great business. Shaving has been around forever. Men are always growing beards, and they don't switch brands very much. The shaving industry isn't going to change a lot in the future. It is a very comfortable feeling to imagine 2 and a half billion males growing beard while you sleep.

In investing, there is no such thing as a called strike. You don't have to swing at every pitch. Just wait for the great opportunity to come around.

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• Warren Buffett
• Investing
• Treasuries
• Gold
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• capitalism
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• austrian economics
• benjamin graham
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• bershire hathaway
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• george soros
• nebraska furniture mart
• gillette

[Ironmanalby]

It's incredible that a person so focused on integrity and people has been more succesfull than people more focused on money!

[fuzziruggi]

takes money to make more money

[aikighost]

@Ironmanalby its because his focus is on integrity both internal and external that he is so successful.

[alz123alz]

Warren is really handsome in a suit.

[fredgeniusarmstrong]

THIS IS FRED GENIUS, MIND OPENER HERE!! GOOGLE FRED GENIUS!!

[ryanboyd72yahoo]

great video!!! thanks for posting!!!!!