O'Reilly logo

Creating a Portfolio Like Warren Buffett: A High-Return Investment Strategy by Jeeva Ramaswamy

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

PART III: INVESTMENT MANAGEMENT

Another main task of investor is to learn how to form and how to manage the portfolio. Managing a portfolio is part art and part science.

The following chapters explain each and every part of investment management, like where to find the stock prospects, how to manage the portfolio, when to sell the stocks, how to manage emotions to profit from stock investing., how to manage risk, and how to use options to enhance return.

Key Points

  • You can search stock prospects in the Value Line investment survey, Magic Formula investing, Wall Street Journal, and company and shopping mall visits.
  • Enough diversification is required to reduce the risk and volatility of the portfolio.
  • Sell a stock after it reaches or is above the calculated intrinsic value of the company. Sell a stock only when the company fundamentals are deteriorating and there are no reasonable management actions to turn around the situation.
  • Mr. Market and Fear and Greed should not command your buying and selling decisions. Be calm and make rational decisions as per your investment research and strategy.
  • You can use 5 to 10 percent of the portfolio in Long-term Equity Anticipation Securities (LEAPS) to enhance return of your portfolio.
  • You don’t need to buy and sell all the time to generate great return all the time. Wait for the perfect pitch.
  • Look for quality companies at bargain prices rather than cigar-butt companies.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required