In this Book (as compiled by Liz Claman), more than 65 of America’s top moneymakers share their winning strategies to their most fundamental points. Famous people like Warren Buffet, Jim Cramer, Suze Orman, and Steve Forbes share their insights on finance and investing.
WARREN BUFFETT (Berkshire Hathaway)
Billionaire Investor shares 3 Principles:
1. Look at a stock as being part of a business versus something that has a lot of flash about it or something your broker or neighbor simply tells you about.
2. Stock <arket fluctuations are there to serve investors rather than to instruct them. Investors shoudl turn a deaf ear over daily market gyrations. Good quality companies can withstand these gyrations.
3. One can never be precise in calculating the worth of a stock, but what you can do is estimate. If you compute that a stock is worth $120, and the current market price is at $60, then buy it. In the long run, you should be able to realize hefty returns.
JIM CRAMER (host, CNBC’s Mad Money)
Lessons from my dad, Ken Cramer…
All that matters is inventory. If you have too much inventory, you’re in trouble. If you have too little inventory, you’re in trouble. If you have t pay too much to keep inventory, you’re going to get hurt. And if you have the wrong inventory, you will get stung.
Though his dad may be in the retail industry, such universal concept is very much applicable in the world of stock trading and investing.
SUZE ORMAN (host and author, Personal Finance Expert)
It is better to have 50% of SOMETHING, than 100% of NOTHING.
In investing, we tend to cling so much on something even if admittedly we have committed a blunder.
If you buy a stock for $100, it only takes 50% drop to cut your investment into half (down to $50). But to regain its original value, it will take 100% increase to bring it back to $100.
STEVE FORBES (President & CEO, Forbes Magazine)
If you want to get rich, start your own business.
If you invest, pay more than lip service to disciplined investing and long-term investing. Everyone is a disciplined and long-term investor until the market goes down.
