Buffett's annual letter: What you can learn from my real estate investments ... this was published over a month ago on CNNMoney By Warren Buffett February 24, 2014: 5:00 AM ET
Whether you’re investing in real estate or anything else in this world, Warren Buffet has certain “fundamentals of investing”
• You don't need to be an expert in order to achieve satisfactory investment returns. But if you aren't, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don't swing for the fences. When promised quick profits, respond with a quick "no."
• Focus on the future productivity of the asset you are considering. If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on. No one has the ability to evaluate every investment possibility. But omniscience isn't necessary; you only need to understand the actions you undertake.
• If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so. Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game. And the fact that a given asset has appreciated in the recent past is never a reason to buy it.
• With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field -- not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.
• Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth.")
“Focus on the future productivity of the asset you are considering.” When you’re looking to buy and hold a property, you have to look above and beyond the current market conditions.
As you do your due diligence you will increase your odds of success. Since we don’t have a mystical “crystal ball” to peer inside (mine is actually dirty so it doesn’t work that well) we have to make our investment decisions based upon current numbers, projected numbers and trust .... trust in yourself! This one of the reasons that Mr. Buffet is who he is ... he trusts himself!
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Buffett's annual letter: What you can learn from my real estate investments ... this was published over a month ago on CNNMoney By Warren Buffett February 24, 2014: 5:00 AM ET
Whether you’re investing in real estate or anything else in this world, Warren Buffet has certain “fundamentals of investing”
• You don't need to be an expert in order to achieve satisfactory investment returns. But if you aren't, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don't swing for the fences. When promised quick profits, respond with a quick "no."
• Focus on the future productivity of the asset you are considering. If you don't feel comfortable making a rough estimate of the asset's future earnings, just forget it and move on. No one has the ability to evaluate every investment possibility. But omniscience isn't necessary; you only need to understand the actions you undertake.
• If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so. Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game. And the fact that a given asset has appreciated in the recent past is never a reason to buy it.
• With my two small investments, I thought only of what the properties would produce and cared not at all about their daily valuations. Games are won by players who focus on the playing field -- not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays.
• Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important. (When I hear TV commentators glibly opine on what the market will do next, I am reminded of Mickey Mantle's scathing comment: "You don't know how easy this game is until you get into that broadcasting booth.")
“Focus on the future productivity of the asset you are considering.” When you’re looking to buy and hold a property, you have to look above and beyond the current market conditions.
As you do your due diligence you will increase your odds of success. Since we don’t have a mystical “crystal ball” to peer inside (mine is actually dirty so it doesn’t work that well) we have to make our investment decisions based upon current numbers, projected numbers and trust .... trust in yourself! This one of the reasons that Mr. Buffet is who he is ... he trusts himself!
http://finance.fortune.cnn.com/2014/02/24/warren-buffett-berkshire-lette...
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125