I have read quite a bit about Buffett's early investment philosophies, and I have often consulted his letters for insights, but I could not recall actually reading any all the way back from 1957. So I began reading them, and I was struck by how, at his early age, he was formulating and articulating principles that now stand as timeless investment theories. Here are a few that jumped off the page at me.
[1957] "Our performance, relatively, is likely to be better in a bear market than in a bull market…" This is true of value investing generally. Value stocks tend to have lower betas than growth stocks, so value stocks tend to outperform in price when the market is doing poorly and underperform when it is doing well. Again, market action is not really Buffett's main focus, but here he was trying to explain to his early investors what they should expect from his investing partnership.
Source: Seeking Alpha
Related Articles:
- 11 Low-Debt, Higher-Yielding Dividend Stocks
- 7 Small-Cap, High-Yield Dividend Stocks
- 10 High-Energy, High-Yield Dividend Stocks
- 12 Dividend Stocks For A Powerful Income Stream
- 7 Dividend Stocks Sporting A Five-Star Rating
Buffett's Principles Are Still Sound
Posted by D4L | Thursday, August 09, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.