The Best Investment Tips From Warren Buffet

Buy Low And Sell High

Amongst the many traits Warren Buffet is famous for is the ability to recognize value investments. In stocks, value investments are the shares selling below the intrinsic value of a company. As a result, the shares have room to move higher.

Choosing good values is important, but Buffet uses other key criteria as well. He invests only in high-quality companies. After all, a stock may be selling at below its value for a good reason. Value does not mean cheap. The stock of a high-quality company could be expensive on a per-share basis but still below the intrinsic value of the company.

By buying stocks when they are undervalued, you are buying them low. Of course, that's only half the battle. Once the stock rises, you have to decide when it's time to sell. Mr. Buffet watches his investments carefully. When a stock starts to become overvalued and the market grows frothy, it's time to remember the adage: buy low and sell high.