Warren Buffet's Berkshire Hathaway has reported a 14% increase in its profits for the second Quarter. That may not be news for people accustomed to the Warren Buffet ways of earnings.
The multi-billionnaire investor, the second richest man in the globe next only to Microsoft Founder Bill Gates, according to Forbes, and known for his philonthropic inclinations, made a $1 billion profit on a 10-month old investment in BYD, China, after shares of the car and battery maker quintupled. An icon larger than life, Warren Buffet has three principles to offer to people who want to make it big in the financial markets: 1. Do not lose money; 2. Do not forget Rule One; 3. Don't get into debt.
Mr Buffet does not see the economy getting into over-drive anything soon, but he definitely feels corporate America and the Government's initiatives have been in the right direction, doing what they could in the current decline. So, what are Warren Buffet's secrets to winning in the financial markets? "Using seventh grade math and common sense to analyze a company's underlying economics; buying a business not a stock; ignoring the fluctuations of the stock market; and, most importantly, maintaining a margin of safety."
Masters of the trade always make their works look too simple to be anything spectacular. Nevertheless, their methods are worth incorporating and emulating.
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