Phoenix, Ariz – May 23, 2016 – Warren Buffet, one of the most successful investors of our generation as well as one of the most revered people in business and finance as the third richest person in the world – lives by certain rules and methods of investing that in most cases incredibly simple, yet extremely impactful.
Mr. Buffet, the founder, chairman and chief executive officer of Berkshire Hathaway (NYSE: BRK-A) which currently has a market capitalization of $350 billion, is most widely known as a long term “value investor” and practiced under the famous Benjamin Graham. Graham was in large part responsible for creating and perfecting the value investor investment methodology and the primary underlying investment principles that guided the decision making process and selection criteria for companies that qualify to be included in a portfolio.
Buffet has created and still uses today, 8 simple investment principles, which can be found on ArcaFinance.com. Two of the more popular principles are 1. Always have a margin of safety, and 2. Understand the business. Mr. Buffet is also very well known for and commonly shares insightful words of wisdom about life and business in his various speaking engagements, interviews, and of course – the annual shareholder meeting for Berkshire Hathaway. Two of his famous quotes are “Price is what you pay, Value is what you get,” and “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
In a recent interview with CNBC, Warren Buffett also made a very bold claim, “I could end the deficit in 5 minutes,” he stated. “You just pass a law that says that anytime there is a deficit of more than 3% of GDP (US Gross Domestic Product), all sitting members of Congress are ineligible for re-election. The 26th amendment (granting the right to vote for 18 year-olds) took only three months and eight days to be ratified! Why? Simple! The people demanded it. That was in 1971- before computers, e-mail, and cell phones. Of the 27 amendments to the Constitution, seven took one year or less to become the law of the land…all because of public pressure.” In our view, we believe if such a law were to pass, as well as the ones included in the Congressional Reform Act of 2011 – the country would be much better off financially, and Congress would finally be set straight and act much more in the favor of the American people, then of themselves.
Mr. Buffet is a global icon and has done extremely well for himself, has made a lot of money for his long standing shareholders, and has guided those that have taken his advice and put it to practice. You can learn more about this incredible man and his 8 investment principles by visiting ArcaFinance.com
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