• Skip to main content
  • Skip to primary sidebar

Self Reliant Living

Rural Living for less than $2,000 a month

Warren Buffett’s investment strategy still pays

by Harold Carey Jr

There’s arguably no investor more famous than Warren Buffett. The so-called Oracle of Omaha is worth north of $100 billion, more than the market cap of Ford, Kroger and many other big companies. Buffett is most famous for his “value investing” approach, but in recent years, some have wondered if he was perhaps falling behind the times. Still, Buffett continues to beat markets.


So what does value investing mean? Buffett looks for businesses that seem valued below their intrinsic value. This might seem like common sense. After all, isn’t the point of investing to buy low and sell high? Yet in large, liquid markets with lots of investors, it’s hard to find a good deal. Why? Because tons of professionals are busy evaluating companies, all looking for good deals.
Often, value is measured with price-to-earnings ratios and other metrics. Buffett’s strategy is to dig deeper, looking at a company’s so-called “fundamentals,” including not just measurements like revenues, but also assets such as factories, low debt levels and various other factors.
Buffett typically avoids investments in emerging tech companies, which often offer high rewards, but also high risks. Rather than acting as a soothsayer trying to predict major future developments, Buffett hunts for businesses that appear a bit undervalued right now. He also looks for firms that could enjoy steady, predictable growth in proven markets and sectors.
With many investors preferring hot tech stocks and the like, Buffett’s investment strategy sometimes appears outdated. And yet, Buffett’s conglomerate, Berkshire Hathaway, has enjoyed burgeoning stock prices in recent weeks, often beating the market. Berkshire Hathaway’s market cap has topped $700 billion, making it one of the largest companies in the world.

Filed Under: Finance Tagged With: money

Primary Sidebar

Welcome to our home

Learn about Self Reliant Rural Living, Gardening, Preparedness, Camping, Bushcraft, Survival Skills and Health.

Videos

Recent Posts

  • What hazards you are most likely to encounter while participating in wilderness survival activities?
  • What causes a heat stroke?
  • Ways to treat water found in the outdoors for drinking
  • Ways to attract attention when lost in the woods
  • How to survive in exposure conditions?
  • How to Build a Campfire
  • Emergency Shelter Configurations
  • What are the 5 W’s of campsite selection?

Tags

back pain Bushcraft Business Campfire cancer Cartoon Clothing dementia disinfect water education family Finance Fire Fishing fitness flu food Garden hand sanitizer hazards health heart Heat stroke Home Office hypothermia insurance Jobs money nature Outdoors Personal Development physical activity recipe retirement Rural Living Safety Saving Shelter Shelters small business sunburn Survival skills Technology weight loss wilderness survival

Copyright © 2023 · Magazine Pro on Genesis Framework · WordPress · Log in