Warren Buffett is a legendary investor who has given us guidelines to go through before investing in a stock for long term. Have a look at below rules and use them while going for invetsment in any stock.
- Invest in companies, which have demonstrated consistent earning power.
- He does not believe in future projections or 'turnaround' situations.
- Businesses earning good returns on equity while employing little or no debt always merit attention.
- Management in place i.e. company should have good people in place.
- Simple businesses which one can understand and that was the reason he never invested in technology stocks and was saved from dotcom bubble.
- He finds out the intrinsic value of a stock and does not believe in an offering price.
Thus make use of above guidelines while investing in a stock or else use our
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