Thursday, August 26, 2010

Another Buffett's Lesson

Found this interview from Motley Fool UK. Prem Jain is the author of the book, Buffett Beyond Value.

 These are some key important takeaways from the interview:

  • Ensure that the downside risk of an investment is extremely low. A classic investment rule "Rule No.1, don't lose money; Rule No.2, don't forget Rule No.1"
  • A company's profitability has to be sustainable and has a business economics for possible growth. Talking about business predictability
  • Track record, cost consciousness, ROE and integrity are all important criterion when you look at the management. This is to ensure the management not just grow the shareholders value but most important of all, don't destroy it.
Okay, all these advices sounds simple but they aren't easy to do. If being Buffett was so easy, everyone would have achieve a result like him. But it is NOT impossible. 

I bet if you read any book about Buffett or even his letters to shareholders, they are all gonna be the same. 

Here is the link:

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