29 March 2011

Behavior of Business Like Investor


Business like investors have common behaviors as below:

1)Tend to hold for long term

Business like investors tense to hold their investment for long term (definition here is 5 years and above) as they understand that long term profit is much bigger than short term profit after they take into account all potential risks and returns.
They would like to achieve twofold or more than that as they think that it is achievable given the homework they made. But they also not restrict them to hold for long term if they meet the return target given shorter period.

2)Do a lot of homework before make any investment

As like what Warren Buffett mentioned, he doesn't mind to invest in a company which is not opened for trading for next ten years. His argument is that he treat this investment as a business. So long as the company he invested is doing well, he doesn't see a need to liquidate it.


3)Contrarian

 Buy Low, Sell High. Buy when people is fear and sell when people is greed.

1 comment:

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