Warren Buffet Rule of Thumb
Buy stock in businesses that are so wonderful that an idiot can run them because sooner or later, one will.
Short, sweet, to the point ... tips, tools, and rules of thumb for innovators and entrepreneurs!
Buy stock in businesses that are so wonderful that an idiot can run them because sooner or later, one will.
Sage advice for
Investment
Less than one-tenth of one percent of all start-ups receive VC money, accounting for less than 2 percent of all small business financing ... very few angel investors are actually accredited ... most angels are actually informal investors, not high-profile sophisticated investors who mandate fancy presentations, well-coiffed business plans, and attractive 10X returns.
Sage advice for
Angel Investors,
Investment,
Investors,
Venture Capital
A wind power development project needs an investment of about $2.5 million per MW; hydro, $2 million; and biomass, $3.5 million. (2009)
Sage advice for
Investment
Sage advice for
Cash,
Critical Success Factor,
Entrepreneur,
Investment,
Success,
Talent
The rate at which angel-backed companies go public or get acquired is about 1 to 1.5 percent.
Sage advice for
Investment
The safe way to double your money is to fold it over once and put it in your pocket!
Sage advice for
Finance,
Investment
Banks holding land or buildings as collateral can sell them and usually recoup about half their losses if the borrower files for bankruptcy protection.
Sage advice for
Finance,
Investment,
Risk
First funding from founders, family, friends, fanatics, ... and fools!
Sage advice for
Entrepreneur,
Finance,
Investment,
Start-up
A tech company with solid products and a bulletproof balance sheet getting its share price absolutely creamed is often a ticket to huge returns.
Sage advice for
Investment
Don't peek ... peek the day you retire, and you are going to have so much money, you are going to say, 'What kind of miracle is this?' ... invest over a sufficient time frame to allow the market to do its work.
Sage advice for
Investment
Rub them against your teeth ... a real pearl will grate.
Sage advice for
Investment
Skate to where the puck is going to be, not where it has been.
Sage advice for
Investment,
Leadership,
Success
During bear markets, by the time a recession is acknowledged by a country's leaders or in news headlines, the worst of the selling is over and a reversal is due.
Sage advice for
Investment
Stock markets lead economic activity by about six months.
Sage advice for
Investment
When stocks are down, buy ... they'll go lower ... ignore that. When stocks are up, sell ... they'll go higher ... ignore that. Apply this rule consistently and you'll make money in the market.
Sage advice for
Investment
Investors are typically making their decisions based on what the economy will look like in six to nine months.
Sage advice for
Finance,
Investment
Be greedy when people are fearful ... be fearful when people are greedy!
Sage advice for
Investment
Based on computer models that ran thousands of market scenarios, the probability of a portfolio lasting 30 years if a retiree pursued the strategy of withdrawing 4% the first year, with a 3% increase each following year to account for inflation has an 89% chance of success assuming that the portfolio was invested in 55% stocks and 45% bonds ... however, the odds of lasting 30 years declined if average annualized returns were lower than 5% during the first five years of retirement ... for instance, the odds of success dropped to 64% if returns were between 2% and 3%.
Sage advice for
Investment