He invests in value, for the long haul, and he has “uncommon common sense”. He is also very disciplined. This is the most essential ingredient for success in matters of probability. Because the stock market is also about predicting outcomes, I think a person’s temperament in a skill oriented game that involves probability is an interesting indicator of how they are suited to investment. I don’t like to gamble. I think of gambling as taking a risk without any information that provides any advantage over any other player. It’s just luck and probability that decides winners and losers. Some people think the market is like gambling. If you believe that, you haven’t studied it enough. I’m a pretty fair poker player when I am in a game that matters to me. I can concentrate, maintain my discipline, and generally have more good days than bad. But as soon as I am in a situation where I am bored, or the stakes are not high enough to mean much to me, or are so high as to cause me to lose the right level of risk tolerance, I start to lose money. The same thing seems to apply to my stock investing. If I invest enough money to care a lot about the outcome, but to not lose sleep about it, then I have the right kind of mental attitude for the situation, and I am generally successful with my investments on average.
Buffet seems to have the ability to maintain focus and discipline in his strategies across a wider range of risk than many people. And now he is big enough to make a lot of plays that most people can’t touch.
But overall, its his strategy and his discipline. Read up on him, there are many lessons to learn from the “Oracle of Omaha”
Categorized | Affiliate Marketing 101
Whts D Secret Of Waren Bufets Success. Hw He Became D King Of Stock Market?
Posted on September 9, 2010.
It sure wasn’t asking the same question more than once.
Read his biography.
The word is “the”, not “d”.
And his name is Warren Buffett. If you google it spelled correctly, I’m sure you’ll find dozens of sites that will tell you all about him.
Start with his wiki entry:http://en.wikipedia.org/wiki/Warren_Buff…
The most important lesson from Warren Buffett’s success is that he used his education, courage and determination to succeed.
If you don’t have a good education, then you will not have a basis of knowledge to work from and won’t know how to find the best investment options when they are presented.
His courage to take risks and chances paid off because he knows when to take a chance and how to be safe about doing so.
Determination is important so that when any mistakes were made, he can learn from the mistake, and continue striving for success over and over so that he can build up his fortunes.
Although I did not mention it at the top, his advisors and friends work with him to help him make his money. No one person can succeed by himself and Warren Buffett is no exception.
Kelly Criterion
It’s the equation f = (bp – q)/b
It’s derived from communication theory equations from MIT professor Claude Shannon and theorized to be applicable to investment and gambling by Bell researcher John Kelly and proven in practice by Ed Thorp and Sheen Kassouf who then went on to start a successful hedge fund on Wallstreet.