“Warren Buffet”, Naam to suna hi hoga ! The beauty of his investment process and his life in general is that they are not at all complicated. Look at the following points-
1) He adopts a buy and hold strategy in the midst of high in and out game of the stock market.
2) He is not concerned about what is happening at the macro level. He famously said- “even if the Fed chairman whispers in my ear about the coming monetary policy, my investment decisions will not change even a bit”.
3) He invests in companies which are into simple business. These companies are easy to understand and they are not much disturbed by technological changes.
4) He has made very clear system of his investment game and don’t compromise. Bill Gates and Warren Buffet are great friends. In fact, Buffett has donated more than 90% of his wealth to the charity run by Bill Gates but never ever invested in Microsoft.
5) He still lives in a modest house that he bought in 1958.
These characteristics show apart from other things the system and process, Warren Buffett designed are easy to practice. The law of least efforts is at work. Does this mean Warren Buffet is lethargic? No, but he understood the virtue of not wasting his energy unnecessarily. So how does he use his time? He spends 80% time reading and making notes. By not constantly focusing on market movements, he saves a lot of his time, energy, frustration and misplaced elation.
Can we the small investors learn from the system that great Warren Buffet has designed? I definitely think we can.
And what Warren Buffet does when the market goes down?
No, he is not looking at his portfolio, rather he listens to the poem by Rudyard Kipling-
“If you can keep your head when all about you are losing theirs …
If you can wait and not be tired by waiting …
If you can think — and not make thoughts your aim …
If you can trust yourself when all men doubt you …
Yours is the Earth and everything that’s in it.”
Manoj Pandey
CFP
