What is Buffett's investment philosophy?

Known as the stock god, different people have different views on his investment philosophy.

The first trick: put the eggs in a basket.

When many investors think that "you can't put all your eggs in one basket", Buffett thinks that investors should put all their eggs in one basket and observe them carefully, because he thinks that the success rate of making fewer decisions is naturally higher than that of making more investment decisions under the limited time and resources, just as the only child always gets more care and grows stronger than the family with many children. The "stock god" still believes that due to the limitations of his own energy and knowledge, it is difficult to have professional and in-depth research on many investment objects, let alone ordinary investors.

Move 2: Don't do business if you are not familiar with it.

There is an old saying in China that "you don't do business if you are not familiar with it", and Buffett also has the habit of not doing unfamiliar stocks. At the beginning of 2000, at the peak of internet stocks, Buffett didn't buy it. At that time, everyone agreed that he was behind the times, but now looking back, the Internet bubble buried a group of crazy speculators, and Buffett once again showed his steady investment master style and became the biggest winner.

This example tells us that before making any investment, we should conduct thorough research, and don't make a hasty decision before we know it thoroughly and want to understand it. For example, now everyone thinks that the deposit interest rate is too low. If you want to find a way to invest, you will feel sad if you don't invest. In fact, Buffett warned us that "in some investment booms, it may be better not to participate than to participate." He emphasized that an investment goal is to seek capital preservation first. Only on this basis can there be conditions for stable appreciation.

The third measure: long-term investment

According to statistics, Buffett has invested in every stock for no less than 8 years. Buffett once said that "short-term stock market forecast is poison and should be placed in the safest place, away from investors who behave like children in the stock market". Unfortunately, we often see the opposite example. Many people chase up and down, but in the end they only contribute fees to brokers, but draw water with a sieve. We might as well calculate an account. According to Buffett's lower limit, a stock is held for 8 years, and the trading fee is 1.5%. If you change shares once a month in these eight years, you will spend 12 months in one year, 1.5%, 18%, and the static expenditure without compound interest will reach 144% in eight years! It's not that I don't know, it's shock. It can be said that many successful people often don't last long, while many losers often can't stand the temptation to keep buying and selling.

Move 4: Reverse operation

China has a culture that you can only win if you love to fight. Buffett mentioned that if you want to make money in the stock market, you must be very scared when others are very greedy and greedy when others are afraid. Therefore, when investing, first, you should always confront your own nature, because nature often makes you make wrong investment decisions. Second, you should always observe the surrounding environment. When you feel that the environment is getting greedy, you should dare to say "no"; On the contrary, you should have the courage to say yes. Buffett's investment philosophy is a decompression philosophy in the new era. How can we make decompression investment create our long-term wealth and happy life in the future?