Ten top investment tips from Buffett

Tom Stevenson of the Daily Telegraph reads Warren Buffett's latest shareholder letter and picks out 10 top investment tips.

Here's the first:

When you know you're the best, you can afford to tell it like it is. Buffett says: "Our insurance business had an excellent year... that party is over. It's a certainty that insurance-industry profit margins, including ours, will fall significantly in 2008. So be prepared for lower insurance earnings during the next few years."

And here's the second:

Only four things really count when making an investment (or buying whole companies if, like Buffett, you have $141bn to spend) - "a business you understand, favourable long-term economics, able and trustworthy management, and a sensible price tag". That's investment, everything else is speculation.

Click on the linked article for the remaining eight tips.

Comments

[Find That Money]

Tom
Thanks for your 10 top investment tips.
As I'm new to my small business I hope these tips will help me a lot.

[John]

FTM: If you mean me, you're welcome. If you want to thank Tom Stevenson, you can probably email him your thanks via the linked article.