“Rule no. 1: Never lose... - Deepstash
WARREN BUFFETT

“Rule no. 1: Never lose money. Rule no. 2: Never forget rule number 1”

WARREN BUFFETT

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Take note of these great quotes by Warren Buffett on Investing!

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MORE IDEAS FROM Top 5 Warren Buffett quotes on investing 

WARREN BUFFETT

“Predicting rains doesn't count, building arks does”.

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WARREN BUFFETT

“The three most important words in investing are margin of safety”

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What is Margin of Safety?

‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.

So if a stock is trading at  $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of  $30 (100 minus 70). In other terms, the stock is trading at a 30% discount to the company’s intrinsic value.

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WARREN BUFFETT

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”

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WARREN BUFFETT

“Price and value aren’t the same: Don’t pay too much”

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RELATED IDEA

Buffet's Way

Buffett follows the Benjamin Graham school of value investing, which are :

  1. Look for securities whose prices are unjustifiably low based on their intrinsic worth.
  2. Look at companies as a whole - company performance, company debt, and profit margins, whether companies are public, how reliant they are on commodities, and how cheap they are.

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  • Rule No 1: Never lose money.
  • Rule No 2: Never forget rule No. 1.

If you work from a loss, it's much harder to get back to where you started, not to mention earn gains.

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