consistently outperforms the market and his moves are followed by thousands of investors worldwide. Buffett seeks to acquire great companies trading at a discount
to their intrinsic value, and to hold them for a long time. He will only invest in businesses that he understands, and always insists on a margin of safety.
Regarding the types of businesses Berkshire likes to purchase, Buffett stated, "We want businesses to be one (a) that we can understand; (b) with favorable long-term
prospects; (c) operated by honest and competent people; and (d) available at a very attractive price."
Value Investing is a investment philosophy, conceptualized by Benjamin Graham in 1949. Benjamin Graham is known as the greatest investment guru of 20th century –
mentor to legendary Warren Buffet. Its an investing style which demands investing in assets/stocks available
at a price which offers substantial discount or “margin of safety” with respect to intrinsic value.
Margin of safety: This concept has been considered as key cornerstone of value investing by most of the investors. Margin of safety is the
difference between market price and intrinsic value of the asset. The return on investment is directly linked to the margin of safety you deploy.
Intrinsic Value: The actual or true value of a security or asset ,which may not be equal to its market price or book value. It is ordinarily calculated
by summing the future income/cash flows generated by the asset, and discounting it to the present value.
” Price is what you pay and value is what you get” - Warren Buffet
Value Investing Rules
Rule No.1 : Never loose your capital . Always preserve it.
Rule No.2 : Never forget Rule No.1s
- Warren Buffet
