Yesterday, we looked at four of the eight tips Investopedia offers for thinking like Warren Buffett. Here are the remaining 8 tips for investing like Buffett:

Consider probabilities: Warren Buffett is a fan of the card game Bridge, in which successful players beat their opponents by considering probabilities. Likewise, you can think of stocks in terms of probabilities. The Investopedia article points out that investors who consider the probability of a good return over 10 years is likely to ride out down cycles to find success in the long-term.
Realize that investing has psychological aspects: We would like to be unemotional …read more

Sure, the man we consider the premier investor of our time has lost billions in this recession. But it’s a recession. Everyone’s going to lose money. And even though he has lost several billion dollars, he’s still got $37 billion, and the only guy in the world that is richer is Bill Gates. Clearly, there are things that we can learn from the “Oracle of Omaha.”
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 …read more

One of the more interesting things I read this morning was a piece over at BloggingStocks about investment vehicles known as credit default swaps (CDSs). These little investments, along with CDOs, are among the reasons that we are having a major meltdown on the stock market this morning.
Here’s why: CDOs and CDSs are major reasons that mortgage lenders started going crazy with approving borrowers. These investment vehicles made it very easy for banks to package their loans into securities and transfer the risk elsewhere. Loan officers get the commission, investors get the risk.
Nice.
And one of the architects of the CDS …read more