Sunday, May 18, 2008


For anyone who read yesterday's post you've learned a valuable lesson about blogging while intoxicated: don't drink a six pack and attempt to summarize international investment strategy.  I don't know what had me more hung over... drinking all night or trying to understand Warren "The Buffer" Buffett.  Fucked my shit up.  So tonight I'll try to boil Mr. Buffett down to his basics, make it coherent,  and offer 1 solid stock that he LOVES - for good reason.

So, his basic approach to investment is as follows:
1.  Buy what you understand.  If you don't know what the product is or how the business is run, don't get it.

2. Buy stock in companies that have simple products that you know what it will look like in 10, 20, .. 80 years.  Wrigley's chewing gum is going to look and function the same in 2108 as it does in 2008.

3.  The best way to pick a stock is to sit in a room and think.  If you don't have a good idea of what to do after thinking privately about it, advice from others isn't going to help.

4.  Buy one GOOD stock per year and ride it to it's potential (ie., hold it for the long term).  Brokers get paid per trade (ie., activity).  You make more money for in-activity (ie., holding stocks for long periods of time).

And Buffett's favorite stock pick?  Coca Cola.  It meets all the above criteria and - most importantly - Coke has no fucking taste memory!  What does that mean?  It means you never get sick of drinking it.  So if you have 5 Coke's today you'll probably have 5 tomorrow and 5 the day after that.  That's fucking ingenious!  Multiply that by the people in China who drink the shit like it's Jesus Juice and you've got a winning business strategy.  I'm throwing some Coke into my portfolio tomorrow.  So, until then, have a Coke and a smile Buckos!

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