Secrets of profitable investments from Warren Buffett

Probably there isn't a single person in the world who hasn't heard of one of the greatest investors of our time - the Oracle of Omaha. We are talking about Warren Buffett – an American entrepreneur, investor and head of the Berkshire Hathaway holding whose capitalization during the years of Buffett's management exceeded $300 billion. The amount of Warren Buffett's personal fortune is $82 billion which provides him with the third place in the Forbes list of the richest people . The nicknames "Seer", "Wizard of Omaha", "Oracle of Omaha" characterize a unique
ability of the investor to predict profitable deals and invest in shares of companies that increase their value multiple times in the long run.

A lot of people try to copy his purchases hoping to achieve similar success, but the press learn about the major Berkshire Hathaway deals much later than their completion.

In his successful investment activity, the Oracle of Omaha adheres to a number of rules that we are sharing with you. Adopt them!

1. Buffett invests only in business models that he understands and traditional sectors of the economy that are familiar to him: electric power, heavy industry, and insurance. Following this principle, pay attention to the securities of companies whose activities you can judge not only from hearsay, but also thanks to your own expertise.

2. Choose "great" companies. The combination of a unique product and competent marketing allows a business to maintain high margins and pay good dividends to investors.
Play the long-run game. Buffett considers eternity to be the perfect period for investment . Of course, we are talking about the prospects of investments, and not about the return on investment terms.

3. The legendary investor does not chase fashion trends and does not buy popular shares of Internet companies. His habit is to pick up the most undervalued assets: organizations with high return on equity, low debt and an attractive market capitalization-to-earnings ratio.

4. Buy "at the bottom". Following his own rule of "be fearful when others are greedy, and act greedy when others are fearful," Buffett purchased the securities of Wells Fargo, General Electric, Goldman Sachs, and Bank of America at very low levels during the recessions. These stocks are now the jewels of the Berkshire Hathaway portfolio.

5. Only reliable management. The investor chooses only those companies whose management can be trusted. Buffett judges the level of managers' decency by the company's financial statements. Carefully analyze the reports!

6. An important rule the Oracle highlights is spare cash on your trading account: this money will help you make a good deal on time and will support you during the periods of turbulence.

7. International range of vision. Warren Buffett's stock portfolio includes not only American securities, but also Chinese, Israeli, and European ones. The investor monitors global trends and invests in promising companies around the world.

It's only fair to note that other successful investors adhere to their own rules that in many ways contradict the above-mentioned points. However, the steady success and systematic growth of the fortune the "Seer of Omaha" possesses suggest that his strategy is at least worthy of attention.