Warren Buffett s investment strategy is by aqq19286


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                                                                                                                           “Research and time have shown that value
                                                                                                                        investing among all other investment strategies
                                                                                                                                                                                   “it's Better to
                                                                                                                        produce the most consistent result. Although               Buy a good
                                                                                                                        other methods are good, usually when investors
                                                                                                                        get into ‘get rich quick schemes’, they tend to find
                                                                                                                                                                                   company at a
                                                                                                                        themselves in ‘get poor quicker’ situations instead,”      fair price than a
                                                                                                                        explains Ken.                                              fair company at
                                                                                                                           Investing is a lot about common sense. One
                                                                                                                        doesn’t need to have a PhD or know complicated             a good price.”
                                                                                                                        algorithms to invest, but only to understand the           clive tan, entrepreneur and avid investor
                                                                                                                        business they buy very well and know how to value
                                                                                                                        them to generate good returns, Ken believes.               the path to fIrst mIllIon
                                                                                                                           The need for consistency in wealth creation is          There are two mains ways by which a person can

                       Becoming a
                                                                                                                        very important. What Ken and Clive teach in the            become rich: to invest in your own business or
                                                                                                                        MIP seminars is a disciplined approach to invest           invest in someone else’s. Both of these require
                                                                                                                        regularly, set a specific return target and eventually     keen understanding of how the business works and

                   Millionaire Investor
                                                                                                                        for participants to become millionaires in time.           how to calculate its intrinsic values.
                                                                                                                           “If we want to retire by 65 and live to 85, we             “The biggest mistake investors make is that they
                                                                                                                        calculated that the average person should have $1          over-estimate themselves. If an investor is over-
           Find out how you can tap into the winning StrategieS oF warren                                               million in cash in order to spend $1,500 (present          confident, the chances of making mistakes are very
                     BuFFett and Become a Savvy Stock inveStor.                                                         value) every month to cover those 20 years until he        high. It’s truly better to buy a good company at
                                                                                                                        reaches 85,” explains Ken.                                 a fair price than a fair company at a good price,”
                                                                                                                           “Becoming a millionaire in cash is not a luxury;        Clive says, referring to the lack of balance between

              arren Buffett’s investment strategy is          stocks that trade for less than their intrinsic values.   it is a must. Yet a lot of people do not realize this,”    their emotions and independent thinking.
              legendary and is known to be the most           They are known like stocks ”on discount”. Value           he adds.                                                       More than reading research reports churned
              successful ever. Take this for example: if      investors actively seek out stocks of companies that         The MIP helps attendees understand the six              out by analysts, Ken believes investors should
  you invested $10,000 in Bershire Hathaway in 1965,          they believe the market has undervalued. The stock        different types of companies, how to evaluate them,        also develop the eye for assessing companies on
  when Warren Buffett took charge of the company,             market tends to overreact to good and bad news,           and how to have a good grasp of financial reports.         their own. This is done by acquiring insights on
  it would have grown to $70 million today.                   and so stock price movements may not correspond           The first day covers the money management aspect           how a business operates, where it derives income
     Lead trainers of Millionaire Investor Program,           with the company’s current as well as long-term           of investing, which is about the basics of allocating      and the factors that would affect its profitability.
  Mr Ken Chee and Mr Clive Tan are avid investors             fundamentals. Therefore, you can start to look            money for investment.                                      Assessment of management and a keen business
  and practitioners of the Warren Buffet investment           capitalise and generate profits for yourself when            Ken says that investors should only invest money        owner’s mindset is also crucial to the application
  philosophy. They started an “Investment Mastermind          the price is deflated.                                    they can afford to lose. To start off on the right         of value investing.
  Group” in Singapore several years ago to study                 For example, value investors would seek out            foot, they need to have clarity of purpose, a proper          “Value investing is always relevant because we
  and sift out good equity investment opportunities.          companies that have lower-than-average price-             strategy and a strong action plan to achieve their         can never time the market. So it’s important to
  Subsequently, they started 8 Investment Pte Ltd             to-book or price-to-earnings ratios and/or high           desired goals. This means knowing how much to              understand the techniques of value investing so
  as a private investment company that focused on             dividend yields.                                          invest and how much to gain in a specific time             when the opportunities arise, we can capitalise on
  turning their business revenue and profits into a              Ken and Clive are very passionate about sharing        frame.                                                     them,” Ken says.
  successful investment engine.                               how one can minimise risk and maximising returns             The three-day MIP seminars are held from                   With the market presenting opportunities for
     Ken and Clive had gone long distances – literally        in investing. They believe that most of the time,         Fridays to Sundays, 9am to 9pm about four times            buying companies at undervalued prices, many of
  – to gain insights directly from Warren Buffett.            risk arises from ignorance.                               a year. Attendees include entrepreneurs, working           the MIP participants have since made good gains.
  They have recently traveled to Omaha, United                   Education is the highest form of leverage. As          professionals, traders as well as semi-retirees.           To further enhance their learning, an e-group has
  States, to attend the most celebrated Warren                such, they created and led the Millionaire Investor                                                                  been formed to serve as a platform for networking
                                                                                                                                                                                   and sharing of ideas amongst investors.
                                                                                                                                                                                      “We see a lot of transformation in the
“Becoming a millionaire in cash is not a luxury. it is                                                                                                                             participants in terms of their investments. Every
     a must, yet many people don’t realize it,”                                                                                                                                    quarter, we have a networking session where they
                                                                                                                                                                                   share their results and what they have discovered,”
    Ken chee, entrepreneur and master trainer of the millionaire investor program, spirit of enterprise award 2005.
                                                                                                                                                                                   Ken shares.
                                                                                                                                                                                      Diligent work, analysis and research are backbones
  Buffett’s annual general meeting. “It’s the best            Program (MIP) to share the essence of value                                                                          of a good investment strategy. “Investing takes a bit
  ‘seminar’ one can attend, just to tap into the wise         investing in the simplest terms. They are able to                                                                    of time. Usually you will observe that the richest
  and farsighted vision of one of the richest men on          conduct the program in a fun way through games,                                                                      people will make their wealth in their 40s. Prior to
  the planet,” says Ken.                                      theories and true case studies. The time-tested                                                                      that, they are still building up,” Clive explains.
                                                              value investing strategies practiced by the likes of                                                                    “What is most important is integrity. We know
  value InvestIng demystIfIed                                 Mr Buffett are shared in this power-packed, three-                                                                   where we stand. We know where we come from,
  The key to building a successful stock investment           day program.                                                                                                         we are very comfortable and confident with our
  portfolio is to understand what value investment              Designed for aspiring investors who are keen                                                                       approach,” Ken adds.                                    left:
  really is and why it is important to understand             to understand the fundamentals of analysing                                                                             To know more about the Millionaire Investor          Ken sharing valuable
                                                                                                                                                                                                                                           investment insights
  how to seize good opportunities when a company’s            companies, getting good returns and ultimately                                                                       Program, or to attend a free 2-hour Millionaire         with his graduates
  stock is undervalued. Most people enter the stock           building their wealth, the MIP has become a                                                                          Investment Seminar, you can sms or call Executive       after learning from
                                                                                                                                                                                                                                           Warren Buffett at
  market blindly, following rumors and “gut feel”.            popular course, especially for those who have                                                                        Directions at 97722605 or visit www.millionaire-        Berkshire Hathaway
    Value investing is the strategy of selecting              become casualties in the recent market meltdown.                                                                     investor.com. SI                                        AGM in US.

                                                   48 SmartInvestor                                                                                                     SmartInvestor 49

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