Lucky for us, Investopedia took eight valuable tips from the book The Warren Buffett Portfolio and offers them to the world. Here are the first 4 of the 8 tips for thinking like Warren Buffett as you make investing decisions:

1. Consider stocks a business: Instead of looking at stocks as part of a game, look at is as a business. Buffett says that if people considered themselves “part owners” of the companies they invest in, they would make more deliberate choices and think things through.
2. Make larger investments: Buffett believes that if you do your homework, and make careful decisions, you can choose solid, fundamentally strong companies that you should feel comfortable putting more money into. Yes, you want some diversification. But Buffett feels there’s such a thing as too much of a good thing.
3. Reduce turnover in your portfolio: Constant buying and selling and trying to time things to “make it big” can result in missed growth, as well as adding up the transaction fees that eat into returns.
4. Don’t rely only on stock prices: Buffett looks at the fundamentals of a company, and its potential growth, before making a decision. If you choose a good investment, the stock price will eventually take care of itself.

Tomorrow we will look at the remaining four tips for investing like Warren Buffet.

Image source: Mark Hirschey via Wikimedia Commons

Post from: EveryJoe

8 Tips for Thinking Like Buffett, Part 1

This is one that I really thought would happen. I didn’t think it would happen easily or exactly quickly, but I thought it would eventually get approved and move forward.

Part of me thinks this could still be in the overall strategy though. The YHOO stock price has already dropped to $24 from it’s 52-week high of $34.

What do you think? Could it be that Microsoft will come back in a few weeks or a couple of months and offer a little less than their original offer, getting Yahoo! for an even greater deal through an official hostile takeover? Steve Ballmer has said no, but people change their minds frequently. Saying no strongly could help generate the drop in stock price they’re really looking for in the deal.

Here’s some other current news coverage of the deal from ZDNet:

• Why Yahoo’s ad inventory is so important to Microsoft
• Microsoft takes its ball and leaves Yahoo on the Web 2.0 playground
• Microsoft walks: Five reasons why it’s a good move

Photo Source: flickr wes4ua’s photos

Post from: EveryJoe

Is It Really Over? Microsoft Pulls Yahoo Offer