Buffett and Munger Four Filters Value Investing
When it comes to investing, there are many different approaches that people can take to succeed. They can follow a trend, and buy what is starting to go up. Or, they can determine the real or future value of a company or asset, and then purchase it while the asset is inexpensive. This is known as value investing. The most successful and famous is Buffett and Munger four filters value investing.
One of the characteristics of value investors is that they tend to do the opposite of what everyone else is doing. When everyone is lost in a buying frenzy, value investors are selling. And, when the market has bottomed out and no one is buying, value investors come in and start buying. Buffett and Munger four filters value investing is no exeption to this pattern. When everyone was buying internet stock during the bubble, Buffett and Munger watched and bought boring old low tech businesses that other investors had no interest in.
Warren Buffett, the most famous value investor, has been successfully investing for decades. Most of his first investors have become millionaires, due to the consistent and high returns. Buffett is proof that when people are successful investors, they can become exceedingly wealthy.
Here are the rules for Buffett and Munger four filters value investing. This is what they look for when considering investing in a company:
- The business is understandable
- It offers sustainable competitive advantage
- It has able and trustworthy managers
- They can aquire it for a bargain price
Why is Buffett and Munger four filters value investing so successful? Because it is the constant and consisten application of an investing system. The real value is in the consistency and systematic application of the rules. Most investors lose money because they randomly buy and sell stocks based on emotion. This is a strategy to lose money in the markets, which is what nearly always happens over time. But we feel that for most people, it takes too much time and work to do all the research and gain the experience necessary to succesfully apply the strategy of value investing. It requires years of practiced hard work, patience and consistency, which most people are not going to do.
So, what's the solution? How can people apply a simple, easy to understand, yet successful system to buying and selling stocks? We believe we have found a way for anyone to apply simple rules to successfully invest. That is why we used Advanced Artificial Interlligence Technology to create our investing system.
For more information, check www.OnlineInvestingAI.com.