Buffet’ology for tackling

difficult market times

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Warren Buffet: The Legacy

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Warren Buffet: The Legacy

• When it comes to difficult times, it is not unusual for people to look for leadership

• Warren Buffet is the one man who has a profound influence over the thinking of many of us especially during phases of economic downtrend

• This presentation would take you through the few strategies adopted by Buffet which have proved winning.

• And we call it the Buffet' logy of tackling difficult market times

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How does Buffet Invest?

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Warren Buffet’s mantra of looking at the businesses as a whole

Understand the business in and outBuffet does not buy technology shares because he believes

he does not have adequate information about how technology businesses function

Look out for favourable long-term prospectsBefore the dotcom bubble burst, he refused to invest in these

companies because he believed there was not enough data available to him for understanding the complete picture surrounding these companies.

Invest in organizations operated by honest and competent people

Pick up stocks available at a “very attractive price” only

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Bear Market Investing,

the ‘Warren’ Way

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Buffet treats Bear Markets no differently.

His criteria:

1. Make investments in a growing sector /growing company in a good economy

E.g. upcoming sectors such as infrastructure, telecom etc. that can achieve faster growth once the economy turns around

2. Prefer companies with Monopoly or good customer loyalty.

3. Pick stocks of companies with consistent earnings and profit margins showing a significant uptrend

Significant uptrend can be predicted if the company has retained a part of its earnings for further growth

4. Check the Balance Sheet of the company

The cost of operations as well as capital expenditure should be well within the reasonable limits

5. The company should have a potential to adjust prices to inflationary trends

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In Warren Buffet’s words:

“Be fearful when others are greedy and be greedy only when others are

fearful!”

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Thank You!

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