9.investing.secrets.of.Warren.Buffett, Warren Buffett

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T
HE
B
UFFETT
The Nine Investing Secrets of
Warren Buffett
—and how to profit from them
By Professor John Price
“After only a few days, we came to the conclusion that we
could have saved a lot of our clients’ money if we used these
methods.”
─ Ron Boer, Managing Director, Asset Management, The Netherlands
R
EPORT
Mild Mannered Professor from Sydney, Australia,
finally “cracks the code” behind the stunning
success of the world’s greatest investor.
T
HE
R
ESULT
I
S …
The Buffett Report
The Nine Investing Secrets
of Warren Buffett
—and how to profit from them
¾
If you want to be among the few investors in being able to
implement these simple common-sense Buffett-style criteria…
¾
If you’re tired of chasing marginal stocks that risk your capital
and confused by all the conflicting reports from the media and
investment companies …
¾
If you’ve just plain had enough of stock market movements
controlling your life …
… then you owe it to yourself to take
our 30-Day Risk-Free Trial
.
______________________________________________________________________________________________________
DISCLAIMER
:
The information in this report does not take into account the particular investment objectives, financial situation
and needs of any particular investor. As a result, investors using any of the information contained in this document should assess
whether it is appropriate in light of their own individual circumstances before acting on any information provided.
The information provided in this document is for educational purposes only. It is not intended to give investors specific advice as
to whether they should engage in a particular strategy, or buy, sell, or hold any particular security or product specifically
mentioned. All prospective purchasers of securities are recommended to make their own enquiries and in particular, seek
professional advice from a financial consultant, financial planner or stockbroker before acting on any of the information on this
website.
In Australia this report is brought to you by John Price, Authorised Representative of Roxburgh Securities Pty Ltd, ACN
009199740. We hold an Australian Financial Services Licence No. 235311, granted by the Australian Securities and Investment
Commission.
A Simple, Unassuming Man Who
Just Happens To Be The World’s
Most Successful Investor
…
Who Forbes’ readers think should be the
next USA president
W
HEN YOU STEP
into the lobby of 1440 Kiewit Plaza, Omaha, a
guard quickly approaches you and politely, but firmly, asks if he can
help. The reason is that a few floors above are the offices of Berkshire
Hathaway, the US$115 billion dollar company controlled by Warren Buffett.
Without an invitation, this is as far as you will get.
With just 15.8 employees (the 0.8 represents a part-timer) Berkshire Hathaway
oversees investments in 27 public companies ranging from American Express to
Zenith National Insurance. It also has full ownership of 65 private companies
ranging from Acme Building Brands to XTRA.
Warren Buffett is acknowledged by investors
around the world as the world’s best investor.
Suppose someone had the good sense to invest $10,000 in
one of Buffett’s original partnerships back in 1956 when
they first started. And suppose that when the partnerships
terminated in 1969, this person reinvested the proceeds in
Berkshire Hathaway. Today that person would be worth
over $280 million—after all taxes and expenses.
But there is much more to Warren Buffett. His integrity and no-compromise
approach to government and business follies has given him an increasingly high
profile in the press. Recent articles on and by Buffett include:
Dividend Voodoo
(Washington Post),
Avoiding a Mega-Catastrophe
(Fortune),
The Warren
Buffett You Don’t Know
(Business Week)
and
Buffett: The Oracle of
Everything
(Fortune).
The clarity of his thinking led to 25 percent of Forbes readers voting for him as
the next USA president.
Warren Buffett is a friendly, talkative person who likes to explain his ideas
using stories. This is the reason why over 15,000 people crowd into the annual
meetings of Berkshire Hathaway in Omaha — to hear him explain his investing
ideas using “down-home” yarns.
Despite this easy-going appearance, he is a person of definite action. When he
comes across something of value, he acts very quickly.
For example, each year in the annual report he invites owners of companies for
sale to contact him. In the report he lists criteria that need to be satisfied by
these companies. In the 2003 report he ended with the preference that such
businesses lie in the $5-20 billion range.
BUFFETT SECRETS REVEALED
Despite the size of these purchases, for those who contact him he promises “a
very fast answer—customarily within 5 minutes” as to whether he is interested.
Even when he is interested, the purchase is consumated almost as quickly,
generally with a simple one-to-one meeting. No lawyers, no accountants. Just
Warren Buffett and the owner or a principal of the company.
Clearly the
ability to act decisively is a key part of Buffett’s success
.
Warren Buffett is also questioned frequently about his philosophy regarding
inherited wealth. He has made his opinions on the subject public, and has
indicated that he worries that too large of an inheritance would make his three
children spoiled. While it is uncertain the amount bequeathed to his children, it
is known that after Warren and Susie’s deaths, the Buffett’s shares of Berkshire-
Hathaway are to be left to the Buffett Foundation and distributed to charitable
causes. Perhaps this philosophy stems from Buffett’s own frugality.
Buffett still lives in the Omaha house he purchased for $31,500 in 1958 and
refuses to adopt many of the spending patterns often practiced by the very
wealthy (excluding, at one point, his purchase of a corporate jet nicknamed
The
Indispensable)
.
Overall, Buffett is often described as a simple, unassuming man whose ideas
about life are as interesting as his thoughts on business. He pays little attention
to appearances, is passionate about his work and family, loves to play bridge,
fanatically consumes Cherry Coke, hamburgers and popcorn ─ and just happens
to be the world’s wealthiest and most successful investor.
_________________________________________________________________
Dear Fellow Investor,
I am very excited about this report. I had an earlier report but I didn’t think that it
really brought out the deep principles which I had uncovered in Warren Buffett’s
methods. It didn’t do justice to Buffett, nor did it do justice to what I knew of his
methods. Then I woke at 4.00am one Saturday morning and realized that the
only way to describe the results of my years of researching Buffett’s methods
was in terms of secrets.
Immediately I grabbed a pad and starting writing these secrets down. Even the
way I did this was out of character for me. I almost always do all my writing on a
computer. But at this moment I was so excited I could not even wait for my
computer to boot up.
Since that day it has taken many weeks to write them out in a way so that they
would be practical to implement. Also to gather together the supporting evidence
for them.
In truth, you could say this report really started almost forty years ago when my
fascination with unearthing secrets started. For the first 20 years my research
career was focussed on uncovering the secrets of nature in the fields of
mathematics and physics. This resulted in over 60 papers in leading international
journals and three books.
© 2004 Conscious Investing
- 4 -
www.buffettsecretsrevealed.com
BUFFETT SECRETS REVEALED
After that I turned to finance and the secrets of international financial markets.
The result was another series of papers and two books plus a number of high-
level consultancies with major international financial institutions.
Finally eleven years ago I turned to the stock market with the aim of uncovering
the secrets of Warren Buffett.
A central characteristic of the way I think is that as soon as I have made a new
discovery, I want to do two things. Firstly, I want to find all its practical
consequences. Secondly, as an educator I want to make it available to the widest
possible audience. I think of the steps as:
Secrets ⇒ Knowledge ⇒ Action ⇒ Success
In terms of this report, this means that I want to take the readers from the deep
principles of Warren Buffett’s methods through to becoming successful
investors.
Not only is Buffett an investing genius. He also has a remarkable memory and
can perform lengthy and complicated calculations in his head. So I had to more
than just understand his ideas, I also had to develop new tools for implementing
them for the general investing community—as well as for myself. These new
proprietary tools are contained in my system called Conscious Investor®.
As we go through the nine investing secrets I will explain how each one of them
can be implemented in minutes in a practical way using Conscious Investor.
In this Special Report you will discover:
¾
The Buffett criteria for great companies.
¾
How you can cut painstaking research down from months to just
minutes.
¾
Independently audited performance figures of my own portfolio showing
how it returned an average of 19.45% per year compared to 2.82% per year
for the S&P 500 between June 1997 and November 2003.
¾
How a study by Ed Kelly of Trinity College, Ireland, revealed a 10-year
average return of 17.3% per year compared with 10.22% per year for the
S&P 500 over the same period.
¾
How this portfolio took less than 90 seconds to obtain using my system, and
how, once purchased, no more transactions were carried out for the next ten
years.
¾
How investors around the world are discovering my simple tools that are
making Buffet-style investing completely straightforward.
¾
The ultimate “advice filter” to give you just the very best ideas and eliminate
the “glitter” stocks so often promoted by the media.
¾
How to identify opportunities so clearly and convincingly that you’ll be
confident and comfortable with every investment decision you make.
In this Report we will see how everything can be put into action using Conscious
Investor. The Report also contains internet links to a number of demonstration
Viewlets showing even more of the power of Conscious Investor.
1
Historical performance described here and elsewhere in the report is not a guarantee that such
performance will be maintained in the future.
© 2004 Conscious Investing
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www.buffettsecretsrevealed.com
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