Sammy Hatzenbihler: Good solid castles with wide and deep moats. That's how Warren Buffett describes the companies that he invests in. Watch his speeches and interviews on youtube. However, aside from how he selects his investments, it's also a matter of how he proportions his investments. In his MBA speech, when talking about LTCM, he uses the analogy of a thousand/million chamber revolver with one bullet and being offered what ever he wanted to put the gun to his head and pull the trigger, he says he wouldn't do it. Essentially he has the philosophy of being ruin averse, he doesn't "bet the farm". Of course he does it out of experience but if you apply the logarithmic utility of wealth to your investment proportioning, you will by the very nature of a logarithm be ruin averse. This was proposed by Daniel Bernoulli in his 1738 paper "Exposition of a New Theory on the Measurement of Risk", later by Latane and again in 1956 through the application of Claude S! hannon's information theory to investment and gambling by John L Kelly at Bell Labs. The mathematical approaches can offer you a crutch until you develop the expertise that Buffet has garnered through experience....Show more
Ofelia Kieck: The quickest route to making the best choices would be calling three investment advisers and let them sell you on their strategies for FREE. When they're done you'll have a gut instinct on who to trust and what direction to go with the help of a licensed professional.Hope this helps!...Show more
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