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Why We Listen When Buffett Speaks
Mon, 2 May Pre-Open

Warren Buffett is our inspiration at Equitymaster. We use his value investing principles when picking stocks. We don't follow him blindly. But we are all ears when he speaks.

The biggest event when we can learn from Buffett, just concluded in Omaha USA. We're talking about the annual shareholder meeting of Berkshire Hathaway. Warren Buffett and Charlie Munger, his business partner, were there talking questions from about 40,000 shareholders.

This year's event was broadcast live on Yahoo. This allowed people from all over the world to tune in. They were not disappointed. For five hours, the 85 year-old Buffett and 92 year-old Munger answered a wide range of questions. They covered everything from the performance of a new furniture store to the ethics of Berkshire's 10% stake in Coca-Cola.

Here are the key takeaways for Indian investors from the meeting.

  • Only invest in businesses that you can understand.
  • Wait for the right valuations to buy stocks.
  • You need a good mix of patience and opportunism to succeed as an investor.
  • Invest for the long-term.
  • Ignore market short-term market fluctuations.
  • Learn micro-economics and how it impacts business dynamics.
  • Never lose your sense of humor because the world is ridiculous!

The oracle of Omaha certainly dished out a wealth of wisdom. These are some of the reasons why Buffett has done so well as an investor. Berkshire has delivered an average return of 20% a year for 49 years!

You too can aim for such high returns. A word of caution here... It's not easy and it takes a lot of patience and discipline.

You can get started by visiting our Warren Buffett Page for a whole range of resources on the Oracle of Omaha...

Start with the Lessons from Buffett and then take our Quiz on Buffett! Also, get details of books recommended by him, and access an opportunity to invest like Buffett himself! Click here...

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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