From this point of view the man has talent

In early may, they were still financial 40,000 entrants from around the world. They had not hesitated to move to the bottom of the Middle West to listen to Warren Buffett. The American investor shapes the view of the markets for several decades. His recipe Formulas shocks and common sense in the service of a single credo: performance.

From this point of view, the man has talent. Since 1965, the annual performance of the Berk-shire Hathaway action reached 20.3 when, in the same period, the & S P 500 rose by 9.3. A record! Better, now had the nickname of "oracle of Omaha", Buffett has become almost essential reference therefore expected answers in investment strategy. What's easier to hear it! Except that if the founding principles of his wealth are simple to understand, must accept that "the rearview mirror is always clearer than the windshield." In a rich bad news and alarmist rumours macroeconomic news, the good sense of the guru can be valuable. And if it excludes any scenario disaster on the pretext of not "not love horror movies", it is useful to return to four great tips that have helped build his reputation.

1 - Think for yourself

First, not to trust anyone and 'let the idiots read that write idiots'. "". "If Reed" by the herd behavior of allegedly intelligent investor Buffett claims to own, independent thinking and critical: "Me, my good ideas, I do withdraw them never conversations of others." This independence also translates to the level of "who do say you nothing about the future" and forecasts on the trade of analysts next to which "the Fortune fortune tellers have look". In other words, think for yourself is positive and complex, where it is not necessarily to the inverse of the other. Liabilities, the investor becomes active is leaving not lead by modes or consensus. In its last progress report, the financial fun of the gap between the extreme pessimism of the forecasts of experts for 2009 and the masterful soaring 19 of Dow Jones. For its part, Berk-shire Hathaway has ignored the Cassandras. At the height of the crisis, he invested without panic nearly $ 15 billion.

2 - Buy what you understand

Warren Buffett has never hidden his ignorance of technology stocks. Not because they are "unattractive" but simply because he does not understand their business and multiple technological developments make this unpredictable niche. Exceeded, the octogenarian Perhaps. But using "process the result", he made a choice to avoid. It focuses on the DNA of industrial groups where the understanding of the economic model is combined with the talents of its leaders. In the end, nothing very original if it is an opinion well resolved and has always been respected. Its famous recommendation: "If you don't know jewelry, know the jeweler", however illustrates the complexity of its philosophy. Indeed, stating that "the good jockeys get good results on the good horses but none on the chariot", he stressed the importance of the fundamentals of the company. Finally, the "wise" is suspicious of the effect of leverage and derivatives. He describes as "weapons of mass destruction" because the "risk comes from not knowing what you do." Recent history does not entirely wrong.

3 - Invest for the long term

Rome was not built in a day. Need to be patient when investing. The reasoning of Buffett is to choose companies that it will be "perfectly happy to hold if the market collapses for ten years." It seeks to seduce Wall Street nor to build companies with the idea of change everything: "This works better in societies only in marriage." Result, he fled the promises of the speculation in the short term to focus on companies in which "our favorite detention period is forever." In concrete terms, what businesses on sustainable trades, having a dominant position and issuing each year - and long - regular profits.

The Berkshire Ha-thaway portfolio at end-2009 reveals that the fidelity of Warren Buffett businesses is not a vain Word. Examples, American Express, "Washington post", or Coca-Cola are still among the assets of Berkshire Hathaway while equity back to 1964, 1976 and 1988. Invest in the long term to escape anxiety-provoking fluctuating stock market courses in the short term. Especially, by smoothing the erratic movements of the markets, patience offers the opportunity to check the real value of the company in time. Remains to "find businesses which it is possible to predict the activity to fifteen or twenty years."

4 - Be frustrating

"Be greedy when others are fearful and suspicious when others are euphoric." When purchasing, it is when no one wants to buy. "This sentence is not unlike the frenzy for the purchase of Warren Buffett in 2008 while share prices were the lowest.

Voluntary and opportunistic, "the wise" known to darken when the world slows. And recognizing that "the investor trade implies whether stay sometimes inactive", the American knows also intervene when its the most demanding criteria are met. Only have "extraordinary companies at regular prices, and not ordinary companies at extraordinary prices." To do this, he relies on the belief of the inefficiency of the markets trying to detect to better operate. In the end, the Apostle of the vexatious approach does no more or less to distinguish the prices of the value: "price is what you pay, value is what is a." in other words, it operates with a good safety margin in inquiring beautiful not expensive companies whose potential will come increase the value. Cherry on the cake, he acquires them often in a period of decline to sell later when the markets soared. Any art knowing that "if ever you find yourself in a boat which flows, energy to change the boat is more productive than energy to plug the holes".

Ultimately, are these rules infallible No, unfortunately. And if Warren Buffett is verbose in councils, also knows his mistakes. In fact, he learned that "throughout his life, it is impossible for an investor to make hundreds of good decisions." "One year is enough." What 37(b) those who understand nothing to markets where vinegar runs on the tables as soon as the champagne.