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Warren Buffet: Wizard of Omaha

Jan 5, 2017 11:18 AM

Dear Traders,

When someone is asking you who is the best investor in the world, you can easily go with Warren Buffet. This man won't ever let you down. Newspapers define him as "the world's wealthiest man" and "the most influential" one.

His passion for economics has revealed itself when he was still very young and during childhood he has started different ventures, such as selling chewing gum, Coca-Cola bottles or magazines. What makes it unusual is that from the very beginning Buffet knew how to make things really work. Proving this statement, he has developed the best door to door mail delivery by improving the existing order. At 10 he visited the New York Stock Exchange and at 11 he bought the first shares for himself, his sister Doris and bought the land when he was 14 years old. His senior yearbook reads: "Likes math; a future stockbroker". Yes, trading is really where he was born to be.

Studying in Columbia University, Warren met his best teacher and mentor - Benjamin Graham, one of the most famous economists of the 20th century. "The basic ideas of investing are to look at stocks as business, use the market's fluctuations to your advantage, and seek a margin of safety. That's what Ben Graham taught us. A hundred years from now they will still be the cornerstones of investing" Warren used to say.

Buffet can be a perfect role model, if you want to trade like a classic value investor, basically because he was one the economists who invented it. Work on development of value investing theory is one of his main achievements, which involves trading only on stocks, which are selling at an extraordinary discount to the value of underlying assets (so called "intrinsic value"). Buffet has started to pay a lot of attention to the company's background and its management, which is close to all who is fond of fundamental analysis.

One of the main principles of Buffet's trading theory is to find successful but yet unpopular companies and buy their stocks. Considering the goal here we can call it security without any doubts, cause risks are very low and investments are safe, so Buffet is probably as much a long term player as a trader can ever be.

As the economic world is becoming more complicated and harder to analyze every year, value investing can be hard to implement sometimes, but with the great example in front of your eyes and clever approach you can widen your trading horizons and reach new investing heights!

Start your own trading history with us!

Sincerely yours,
Ayrex Team.