Warren Buffett

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Warren Buffet is the world's most successful stock market investor. He was ranked as the richest American in a list compiled by Forbes in 1993. In the year 1956, he commenced his investment partnership with $10000; in 2001 his net worth was estimated at $25.0 billion.

Some of the key tenets of Warren Buffett were as follows:

• Turn off the stock market
  Just in case of the stock market change is the permanent thing. Sometimes the stock market is euphoric and at other times it is pessimistic. According to Buffett, one should not take direction from the market. Buffet says, after purchasing a stock, we would not be disturbed if markets closed for a year or two.
  
  Buffett adds in his sayings, "As far as I am concerned, the stock market doesn't exist. It is only a reference to see if anybody is offering to do anything foolish."
  
  
• Don't Think about the Economy
  Generally forecasting the economic environment and selecting stocks are likely to benefit most from it. Buffett does not subscribe to this approach, as it is more difficult to predict the economy, as to forecast the stock market.
  
  
• Buying The Business
  The time of investing means one must buy a business not a stock. The investment must be viewed from the long-term perspective of a businessman.
  
  Robert G. Hagstrom, Jr. has described the investment strategies by Warren Buffett in a fascinating book titled The Warren Buffett Way: Investment Strategies of the world's Greatest Investor.