Warren Buffett Explains Long Term Stock Investing

Warren Buffett explains the basic tenets of stock investing and how he values a stock. This is a portion a MBA lecture that Buffett gave. The entire five part series can be found on Youtube. He explains what an economic moat is in easy to understand language. My favorite part is when he explains long term investing. There are so few long term investors today. Shareholders are more concerned with quick profits today than investing in long term sustainable businesses.

I think that this is the detriment to many executive teams. They have become far too shortsighted trying to maximize results from quarter to quarter instead of thinking about the next decade.

Comments

  1. avatar Jeff says:

    If only more people would listen to Buffett about long term investing, the markets would be so much less volatile and better off. Last night I saw Andrew Sorkin speak, and he explained how on average an investor only holds on to a stock for 7 months. And those who do hold on to stocks for 7 months most likely consider themselves long-term. (sad… i know)

  2. avatar james moylan says:

    I have a web site where I research stocks under five dollars. I am a astute value investor. I do not believe that warren buffett is the value investor he was years ago if he was he most certainly would have caught the spectacular comeback of ford motor. the stock was trading at just 1 dollar a share two years ago the shares trade at 16 dollars today and the company is well on its way to becoming the leading world automobile company. another example is apple computer the shares traded at just 5 dollars in 1998 today they trade at 340 dollars. he did not see this one either their are numerous other examples.

    • avatar Barata Arthur says:

      As an investor you will not be able to see every opportunity to invest, nor will you be able to invest in every opportunity that you see. Just because Warren Buffett chose not to pick up shares of Ford or Apple isn’t a good reason for any one to questions his status as a value investor(the greatest value investor of our time might I add). If he made a string of bad investment choices while passing up on Ford and Apple I could understand you questioning ability to see value, but when you look at his track record, he is still picking winners.

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