Learn to invest with Buffett

Chapter 8

Chapter 1 Section 7 Opportunities come from life, it is whether you can grasp it
In 1989, I was a lover of Cherry Coke and bought five bottles a day. That year I announced that I would buy Coca-Cola stock for $10 billion. I thought this move was the best way to put your money where your mouth is proof.When I was elected interim chairman of Salomon Corporation on August 1988, 8, the difference was that this time I put my mouth on our money.

I think everyone should have read the report that I was appointed as the interim chairman of the board of directors of Salomon. The reason why I am willing to accept this position is a profound thing, that is, the business managers belonging to Berkshire are so It's excellent, which makes me feel relieved to spend my time on other things.

--Warren Buffett
Buffett thinks the opportunity is right in front of you.Most people don't see this opportunity simply because they're too busy looking for money and security, so they get only so much.When you see an opportunity, you have learned and will continue to spot opportunities throughout your life.When you find an opportunity, you can avoid life's greatest pitfalls and feel less fear.

There are many people in life, when they are faced with a good investment opportunity, they shrink back.Because their hearts are full of fear, they are afraid of disaster from the beginning.Out of this negative emotion, they decide not to invest, or sell what they shouldn’t sell and buy back what they shouldn’t buy. The occurrence of investment behavior depends entirely on optimistic guesses or pessimistic premonitions.If they have a little Jewish investment knowledge and experience, and are prepared, these problems can be easily solved.

In the eyes of the Jews, one of the basic principles of successful investment is to be ready to make profits no matter whether the market rises or falls.In fact, the best investors actually make more money when the market is depressed.This is because the market falls faster than it rises.As the investment experts say, the bull market comes slowly, but the bear market comes in an instant. If you can't grasp every situation in the market, as an investor, not the investment itself, you are taking risks.

"Pioneers can't make money." Rockefeller, who was only 22 and three years old but looked like a seasoned businessman, has always adhered to this creed and strategy.It is very wise to let others take the lead, find the right opportunity and then catch up. Almost all marathon runners who have won the championship say and do this, "No matter how bragging the pioneers are, they must never start blindly."

Rockefeller has always used this sentence as his motto when he was a middleman.Soon, Rockefeller, an oil middleman, used it to open the door to Mobil Oil.The taciturn Rockefeller was like a cheetah with endless energy. The food exported to Europe and the munitions of the Northern Army soared. The federal government printed money like crazy, which led to hyperinflation.Rockefeller had no special dealings with the federal government and Union authorities, yet he made a lot of money and kept buying goods.The salt he bought with Flagler is now a hot commodity in the speculative market, and the salt business has brought him a fortune, and the company has grown into a large company with incidental hay and alfalfa seeds.Being good at grasping every good opportunity for investment, Rockefeller has monopolized the management of the company.

"We have made so much money, how about investing in crude oil?" He discussed with Clark.

"Want to invest in the plummeting Taitasville crude oil? You are crazy, John." Clark disagreed.

"It is said that there is a plan to build a railway from Yinli Town to Taitasville. Once it is completed, we can use the railway to transport it to Cleveland through Yinli..."

Although Rockefeller had worn his lips, Clark remained indifferent.Rockefeller then began to act alone. He took out 4000 US dollars to develop the oil refining business with Andrews, and established a new company. He exclusively took care of the refining and sales of oil. This is really a "cartel" than a "cartel" The way! In 1865, Rockefeller Andrews paid a total of US$3.18 in taxes.There are more than 50 oil refineries in Cleveland, and Rockefeller Andrews Company is the largest. It employs only 37 people, but its total sales in 1865 reached 120 million US dollars.Rockefeller used his patience to wait for the opportunity, and when the opportunity came, he did not hesitate to seize it quickly, thus achieving great success.

Investment motto:

Whether it is Buffett or Rockefeller, once they find the opportunity that life gives them, they will seize it without hesitation and find profit opportunities from it.Discovering valuable stocks from the details is an investment habit that Buffett has always insisted on. Investors should also gradually cultivate their own keen investment sense. Once they find them, they will buy them without hesitation. Satisfactory result.

(End of this chapter)