And he has achieved that by essentially looking for quality, well-managed companies that are undervalued by the market. And he is prepared to wait for the right moment as we have seen recently.

Probably one of his most ignored mantras is: “Don’t get rich quick.”Hence the name of this article.

What lessons can we learn from this Master Trader?

A classic move which resulted in his latest spending spree which was only last September when during the current credit crisis, Buffet purchased options to invest US5 billion in the bank holding company Goldman Sachs.

Buffet has been quoted as saying, “We’ve done business with them for years, with Goldman, and the price was right, the terms were right, the people were right. I decided to write a check.”

Only this week Warren Buffet has invested a further $3bn in General Electric plus He announced only yesterday that Berkshire Hathaway had bought a stake in Hong Kong listed BYB Company, its shares have already jumped 42%.

Obviously Buffet had researched each Company minutely, firstly examining their value, then the risk factors involved and no doubt checking their future profit potential as well.

Buffet plainly has set criteria in place before he invests into anything. Some of this criteria is important and worth remembering, writing down and putting it into practice.

Buffet says it best: “The first rule of investing is don’t lose money; the second rule is don’t forget Rule No. 1.”

Buffet understood this math foible: If you start with a dollar and lose 50 percent of your money, you’ll be left with 50 cents. But then it takes a 100 percent return just to get back to your original dollar. So it’s best not to lose your money in the first place.

Some of the other things that He is well known to check out are as follows:-

Buffet checks out the ROE (Returns on Equity) of the possible future investment. ROE is calculated by taking a company’s net income and dividing it by shareholders’ equity. By this He knows that it measures profits as a percentage of what the investors actually own, and it also reveals how efficiently a company’s profits are growing.

He has been known to look for companies with around a return on equity of at least 15 percent on average but this is open to debate as there are no hard and fast rules on this one.

He also looks at the future activities of the Company and tries to calculate the future value of a company’s expected future cash flows. It’s his way of assessing a company’s intrinsic value. Then Buffet looks for companies selling at a deep discount to that value.

If you just take a good look in today’s market you will see good Blue Chip stocks going for a premium discount.

He is also looking for companies with long-term competitive advantages that make this future forecasting safer and less risky.

Buffet therefore obviously is an ardent advocate of “Buy in Gloom” and then hangs onto them for the long term.

If you had invested only $1,000 that’s $7,760 in today’s dollars with Warren Buffet back in 1956 and never cashed them in. They would be worth a tidy $30.6 million at the end of 2007.That is what you call long term investing.

Buffet is very patient prepared to wait till the right investment comes along. He is in no hurry; this is plainly obvious from the size of his portfolio. Judge this by the size of average manager of the value stock fund who spreads his or her investments among on average 146 different stocks.

He also advocates keeping Cash on hand just in case it is needed, for you never know when the next bargain investment is going to come along.

He’s understands something that a lot of people don’t appreciate. Having large amounts of cash doesn’t have to hurt your performance. Cash can be a strategic asset.” Cash currently represents more than 18 percent of Berkshire Hathaway’s investment allocation.

It goes without saying that Buffet is a great believer in Diversification.

So in a nutshell is it definitely worth following in the footsteps of Warren Buffet? Even following just some of his rules could increase your chances of share trading success.

The NorthernLAND company offers residential, commercial and private projects of different types: villas, bungalows, apartments, penthouses, stores, offices and restaurant buildings. Buying at NorthernLAND guarantees a stress-free purchase, quality and satisfaction.

ABOUT NORTHERNLAND 

NorthernLAND is a Construction and Development company with offices in North Cyprus and England. The reputable company with many years of experience has launched over 300 commercial, residential and private projects of high standards and quality and has got an impressive number of happy customers. The company offers projects of original designs in picturesque places of Famagusta, Iskele, popular Bogaz , Kyrenia and marvellous Karpaz regions.

Within our clients we suggest 3 large groups:

1). Clients purchasing residential property with the purpose of residing in North Cyprus. Among these customers many are British citizens; quite a number of them are retired. They love the slow peaceful pace of life and the lovely climate here, big amount of historical places, local cuisine, high standards of medical services.

2). Clients purchasing property as an alternative variant, holiday type houses (with good rental opportunities). This group predominantly consists of capital citizens and big city dwellers. People come from London, Moscow, Saint-Petersburg, Almaty. A big part is constituted by foreign students who come to North Cyprus to study. There are 5 big University complexes in Northern Cyprus, where the language of education is predominantly English. Rental prices are comparatively high here. That is the reason why many of them choose to buy properties, and some of them join the first group by the end of their education.

3. Investors, buying projects (apartment blocks, shopping centers, restaurants, casinos, hotels and so on).

Each of our clients follows certain aims and objectives, and we are trying to find optimal variants for all of them. It includes design, location, quality of materials and work, meeting construction deadlines, flexible payment options.

How NorthernLAND works?

Above all, QUALITY is our priority, and our satisfied customers are our main marketing tool. Nothing sells better and is that much cost-efficient than favourable comments and recommendations.

‘We offer a wide range of services from architectural design and planning to judicial and consulting services’-tells one of  the owners and the company’s director  Ahmet Cennetoglu. We are practising personal approach, trying to find an optimal variant for every client, regarding their preferences and tastes.’

POSSIBLE VARIANTS:

·          Our Designs, your choice.

        In this case the client chooses a project within existing designs. If it is an ‘off-sale’ purchase, alterations  in the interior and       materials are possible.

·          Your design, our approval

Our architects and engineers will carry out necessary investigations, check and correct  the design taking into account the area peculiarities and it’s size according to the planning regulations.

·          Your wishes- Our Design. 

In this case our specialists will create an original design according to the customer’s wishes, and will step by step implement it to reality. Our architects keep consulting with the clients on every step, and as a result  various interesting and very individual projects are brought to life.

Should I go into education? Food? Insurance? Network marketing? Heathcare? Options trading? Property? What’s the best industry to be in right now?

Well, you will find that in ANY industry, there will be a minority who will be making plenty of money, while the majority will be struggling to survive.

So my answer to that question is that you can become a millionaire in ANY INDUSTRY, only if you are one of the best! If you are not one of the best, you will never become rich in ANY industry.

You CAN become a millionaire in insurance, property, options trading, children’s education, pest-control, retail, food or Internet marketing ONLY when you are one of the best.

So, how do you become the best in the market? The answer is by being totally, absolutely one hundred percent committed towards your particular career or business.

All successful individuals have one thing in common. They love what they do. And because they have such an intense passion for their particular career or business, they do not distinguish work from play.

Their work is their play and vice versa. As a result, they spend every single day and every waking hour working (to them it’s not work), and that is why they become so good at it that they become market leaders and experts.

Have you ever wondered why Bill Gates, the richest man in the world who is worth US$46 billion still works 18-hour days, every single day? Why doesn’t he just sit back and relax on the beach?

The reason is because like all millionaires, what drives him is never really the money per se; it is the love of being at the forefront of technology.

It was his obsession of ‘putting a computer in every home running Microsoft software’ that made him the best in the field.

Many people have the belief that millionaires are people who are just naturally more motivated, disciplined and focused.

The truth is that when anyone does something he or she loves, the motivation, focus and discipline always comes naturally.

If you find that you lack the motivation and discipline to become successful in what you do, the reason is very obvious. It is not your passion!

Think about it. Do you have a natural passion for something? Do you have a hobby? Like playing golf? Looking at beautiful women or men? Computer games? Football? Playing with children? Haven’t you noticed that whenever you are doing what you love, the energy never stops?

It’s like no matter how tired you are, you will always find the energy to do what you love. Well, this is the secret that will lead to your success and wealth!

You have to find something you are extremely passionate about and build your career or business around it!

When you do, you will find that you will be naturally focused, committed and energized to work at it. When you give your best to whatever you are crazy about, you will become the best!

So start asking yourself:

·’What do I love to do?’ ‘What would I do even if I didn’t get paid?’

·’If I had all the money in the world, how would I spend my time?’

·’Who are people who have made their fortunes around this passion I have?’

I guarantee you that when you start looking for them, you will find no lack of role models you can learn from. Remember, do what you love and you will never work another day in your life!