: Stay within your " circle of competence " by only buying businesses whose operations and future you can clearly grasp.
The Intelligent Investor (Buffett’s mentor, Benjamin Graham). Buffett calls this the “cornerstone of investing.” Action: Always buy a stock at a significant discount to its intrinsic value. This buffer protects you from bad luck or errors in judgment. 10 golden principles of warren buffett pdf verified
Even so, adherence to these principles produced a 20%+ annual return from 1965–2020, versus 10% for the S&P 500. : Stay within your " circle of competence
: Buffett has often referred to the stock market as "Mr. Market," who provides opportunities to buy or sell companies at irrational prices. He encourages investors to take advantage of market volatility and buy quality companies at discounted prices. This buffer protects you from bad luck or errors in judgment
Avoid the herd mentality. Buffett emphasizes that you are not right because others agree with you, but because your facts and analysis are correct. Never "Suck Your Thumb"