Frequently bought four of the most important investors in the past century stocks at a time when major market indices fell to real minimum. Your best times, often found in times of market correction. We can seek some basic principles that have in common, the greater their success led.
As we have seen this year, investors reacted to news of the stock market perceive positive or negative for a variety of reasons. I fully admit that it embarrassing to invest in a volatile market. , My temper but the key to finding bargains in the collapse of the markets.
Perhaps the biggest was disciplined investor Benjamin Graham, the father of value investing. British born, but moved to America with his family at an age, Graham has taught us that the starting point for a good financial future starts less than you earn to spend. After the establishment of adequate cash, then you
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Property worth looking for good companies with shares that are discounted to sell at prices below the cost of non-compliance by the company.
So you pay less per share in stock than the liquidation value of the company from the worst-case scenario. It is equally important that the company fundamentally sound, though perhaps can drive around before resources management.
Warren Buffett, a renowned student of Graham, he added that the investors should consider companies to invest more research. By studying the business value of the real surfaces. True value is the true value of the net assets, if liquidated, and this is a safety margin that you want to have. He likes to keep to acquire paid also to investments in the Company's dividend shares in companies rarely to hoarding.
Buffett sums up by saying: He also says, "Owning a good company at a fair price, not a bad company at all costs." "... Not related to the success of investments in IQ, but temperament To control impulses . the need to invest in.