Christopher Best - How to Choose Stocks Like Warren Buffet Does

Christopher Best is a Miami native who has a keen interest in stocks, finance and investing.

Warren Buffet is known as one of the most successful investors of all time. He is the chief executive officer, chairman and largest shareholder of Berkshire Hathaway, a conglomerate company with headquarters in Omaha, Nebraska. From 1965 to 2000, the stock of Berkshire Hathaway has been growing twenty-seven percent a year on average. It did take a dip a few times in the 2000s, but this doesn’t change the fact that, over its history, the Warren Buffet’s company has been performing amazingly well.

One of the obvious approaches to the stock market is to invest all the money that you have in the stock of Berkshire Hathaway. However, there are several issues with this strategy. First, it’s never a good idea to keep all your eggs in one basket. Second, Buffet is mostly an expert on insurance and his company is mainly an insurance holding company. Third, Berkshire Hathaway stock costs over two hundred thousand dollars apiece. Because of this, Berkshire Hathaway stock has limited exposure to other very lucrative areas of the stock market.

If you are an expert in a certain field, you can do very well in that field with a small portfolio by applying the same principles of investing that Warren Buffet used to grow his company. If you are looking for security, yet do not want to spend a few hundred thousand dollars on Berkshire Hathaway stock, you can also closely follow what Buffet is doing and invest in the companies he invests at the same time that he does it.

Buffet himself often says that it is very easy to model what he does and that his approach to investing is very straightforward. He buys and invests in businesses that employ extremely talented people. He usually does that during a period when businesses are in trouble or are growing slower than expected, which results in their stock prices being available at a discount.

Buffet only invests in companies that he thinks are going to be around for a long time, no matter what. He only buys stocks in industries that he has thoroughly studied and understands very well. He also stays clear of the typical mistakes that ordinary investors usually make. He doesn’t invest in stocks when they are at their peak. He doesn’t follow the crowd and doesn’t sell during temporary troubles. Finally, Buffet also isn’t concerned with versatility. Christopher Bestonly deals with stocks that he has studied extensively. Because of his success, Warren Buffet is an example for everyone who is studying finance and portfolio management, including Christopher Best.

For More Information, Visit Here - https://about.me/christopher_best

Christopher Best is working toward his Master of Finance degree at Florida International University in Miami.