Intro to Finance
Learn online
>Basic concepts
>Corporate finance
>Other materials
Financial careers
>Banking
>Management
>Real estate
>Insurance
Goodies!
Ask Financious
Useful links
About us
Known as "The Oracle of Omaha", Warren Buffet was born in Omaha, Nebraska in 1930. He is one of the very few billionaires who have amassed wealth exclusively through investing in stocks. His company, Berkshire Hathaway, has seen outstanding returns over the years. A 10,000$ investment in Berkshire Hathaway in 1965 would be worth 50 million dollars today. This has made Buffet the second richest man in the world with an estimated fortune of 36 billion $.
His secret
His main objective is to never lose any money regardless of market conditions. Buffet believes in buying stocks trading near their tangible asset value and avoids companies that have excess debt. His tip is to look at the company�s track record for ROE and try to predict where the company is going to be 10 years from now.
His advice:"The first rule is not to lose. The second rule is not to forget the first rule."
Peter Lynch
Born in 1944, Peter Lynch became undoubtedly the most famous mutual fund manager forty years later. He started managing the Fidelity Magellan Fund in 1978 which was worth 20 million $ then. When he retired in 1990, the Fidelity Fund was worth 14 billion!
His secret:
He believed in investing in what you know and to always be fully invested. He generally looked for three qualities in a good company: profitability, price, and a good business model.
His advice:"Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it."
Benjamin Graham
Considered as "The Father of Value Investing", Graham created many of the fundamental analysis and value-investing techniques that are used by fund managers and famous investors today.
His secret
Graham appreciates large companies with strong revenues since they present less risk. Additionally, he likes companies that pay out dividends and are in good financial situation. His major technique was to look for companies that are trading below their historical P/E average and trading below 1.2 times book value.
His advice: "To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks."