Warren Buffett’s 12 Investment Principles | Value Investing Strategy for Beginner Investors (TIP487)

Clay Finck outlines Warren Buffett’s 12 investment principles laid out in Robert Hagstrom’s book, The Warren Buffett Way. Additionally, Clay discusses the importance of understanding the psychology of investing, and walks through a case study of how these 12 principles applied to Buffett’s purchase of Coca-Cola in 1988. If you’d like to learn more about how exactly Warren Buffett invests, then this is the perfect episode for you!

IN THIS EPISODE, YOU’LL LEARN:
00:00:00 – Intro
00:03:35 – Business Tenet 1: Simple & Understandable
00:06:40 – Business Tenet 2: Consistent Operating History 
00:08:16 – Business Tenet 3: Favorable Long-Term Prospects
00:09:59 – Management Tenet 1: Act Rationally
00:14:34 – Management Tenet 2: Act Candid
00:16:00 – Management Tenet 3: Resist the Institutional Imperative
00:19:15 – Financial Tenet 1: Adequate Return on Equity
00:21:53 – Financial Tenet 2: Calculate Owners Earnings
00:23:18 – Financial Tenet 3: High Profit Margins
00:23:54 – Financial Tenet 4: $1 Retained leads to less than $1 in value
00:25:53 – Market Tenet 1: Determine the Intrinsic Value
00:30:41 – Market Tenet 2: Buy at Attractive Prices
00:32:56 – Investment Psychology
00:45:44 – Case Study: Coca-Cola

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– The Warren Buffett Way by Robert Hagstrom:

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▶️ EPISODE MENTIONED:
– How Warren Buffett Became The Greatest Investor To Ever Live:
(TIP482) Part 1:
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