warren buffet

• Think of stocks as businesses.

• Increase the size of your investment.

• Reduce portfolio turnover. (tax benefits)

• Develop alternative performance benchmarks. (not price-based)

• Learn to think in probabilities.

• Recognize the psychology of misjudgment.

• Ignore market forecasts.

• Wait for the fat pitch. (strike when in ideal zone)

criteria for selecting stock

• easy to understand

• favorable long-term prospects

• operated by honest and competent people

• available at a very attractive price