Warren Buffett Strategy Free

[james1989]

You may be familiar with my 'good prospects and undervalued' threads.

My strategy is very similar to Warren Buffett's, ie, picking up his quality shares at the same time and at the lows of that quarter when the SEC filing is filed.

So I have decided to condense my picks and discussion into this 'Warren Buffett' thread as it should gain more attention from newbies. The hope is that I can help people stay safe when investing by offering to discuss their stock picks with them.

Best Regards

 

[james1989]

You may also want to visit our website at Warren Buffett Strategy - Home if you wish to discuss privately and view our valuations.

 

[james1989]

I want to start by restating that Tesco is still undervalued, both TSCDY and TSCO, US and UK respectively.

Regards

 

[aparoid89]

A question from my previous topic which didn't seem to give me a solution apart from selling my portfolio and investing in gold. What does Warren Buffett do to avoid losing the value of his portfolio during market crashes? Does he simply hold on and just wait for the value to return a few years later or does he sell off before a market crash?

 

[SlowlyButSurely]

I have been following some companies with interest but happened to find them by chance. What markets do you search when looking for potential investments?

 

[james1989]

Aparoid, serious losses can be avoided by only holding undervalued securities and quality defensive securities. You may also want to keep a partition of your portfolio in cash when undervalued securities are scarce or defensive shares get expensive in anticipation for the next wave of pessimism.

The market can be generally choppy, but all the time, there are quality undervalued opportunities arising in different sectors, if you move in and out of these when valuations allow you to do so, money can still be made with limited downside.

Over the years, no matter what happens, compounding will make you money if you're sensible, all throughout the last century there have been naysayers who have said capitalism is doomed, ignore it, these daytraders wont be retiring with impressive capital gains. Warren Buffett is the perfect example here.

In my eyes, capitalism is only just taking off.

If you're struggling investing, why not invest at regular intervals in a low cost index fund?

My advice would be to stay away from gold, you can not value it, it has little utility, gold is a gamble, stay away, or at least hold it as a small portion of your portfolio if you deem it absolutely necessary.

If you have any more questions, please do not hesitate to contact me or post up here.

Best regards

 

[james1989]

I have been following some companies with interest but happened to find them by chance. What markets do you search when looking for potential investments?

Slowly but surely,

I generally search US and UK markets, and tend to discount the smallest of companies as they do not have satisfactory records to base a valuation upon (they can be valued via the net current asset value method, but this is not as reliable as Buffett's current method), a minimum market cap of around 500mil tends to suffice.

I also tend to shun tech and commodity based companies due to unpredictabilty and cyclical trends respectively.

Regards

 

[Pat494]

my maxim is always invest into blue chip companies, that pay a steady divi and jump in and out as the cycle continues.

The chances of getting into an Apple type company at its birth are very remote, as most of them fail.

 

[james1989]

my maxim is always invest into blue chip companies, that pay a steady divi and jump in and out as the cycle continues.

The chances of getting into an Apple type company at its birth are very remote, as most of them fail.

Hi Pat,

Blue chips are very safe indeed, and the power of compounding a dividend is priceless.

Be safe and compound, as I say, averaging into an index fund such as the SP500 or the DOW30 is one of the safest strategies around.

Regards

 

[SlowlyButSurely]

I will certainly have to do some research and look more into this area. I have been watching BWLD as they look like a good company to invest in potentially however i would wait for a reduction in share price as 87.45 may be a little high at the moment. They are taking a new approach to their business set up too, (buying back some of their franchised restaurants) which could be costly initially so lets see how it goes.

I certainly need to read up on how to evaluate the worth of a company though. any suggested reading material?

 

[james1989]

I will certainly have to do some research and look more into this area. I have been watching BWLD as they look like a good company to invest in potentially however i would wait for a reduction in share price as 87.45 may be a little high at the moment. They are taking a new approach to their business set up too, (buying back some of their franchised restaurants) which could be costly initially so lets see how it goes.

I certainly need to read up on how to evaluate the worth of a company though. any suggested reading material?

I would not buy BWLD until the price approached $53, that's of today, but valuations can change with cash flow. Cash statements reflect the aforementioned activities, I would personally not invest in BWLD this year.

Recommended reading must include 'the intelligent investor' by Benjamin Graham, you can download it for free on the net, this is the staple book of investment.

If you need any more help in valuing a company or assessing quality, please post here or send me a message.

Best regards

 

[SlowlyButSurely]

I would not buy BWLD until the price approached $53, that's of today, but valuations can change with cash flow. Cash statements reflect the aforementioned activities, I would personally not invest in BWLD this year.

Recommended reading must include 'the intelligent investor' by Benjamin Graham, you can download it for free on the net, this is the staple book of investment.

If you need any more help in valuing a company or assessing quality, please post here or send me a message.

Best regards

Thanks very much for your assistance, i'll definately check out that book and crack on with some reading as it's certainly an area that appeals to me. And yes i will probably message you some time in the near future to discuss certain companies and my estimates at their valuations if that's ok with you.

Cheers,

Oliver.

 

[james1989]

-