Warren Buffet has never once in this entire life bought any thing because he liked the past of the company...or past wealth,
All his purchases is because he sees the business sense and likes the future. ...and is willing to accept the risks as offered to him
All stock market returns beyond risk free returns are because he has to assume the market risks and stock specific risks ...and be right that the risks can be solved.
That is the function of the stock market....For someone to assume the risks and be rewarded afterwards if he is proven right.
risk against reward. past return is no guarantee for the future. look at nokia or our home grown proton. either you change or you be changed. last time you buy and hold ( you can still hold for the next 10 years ) this is just my personal take.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
stockmanmy
6,977 posts
Posted by stockmanmy > 2017-04-13 00:10 | Report Abuse
no risk no reward is a fundamental truth.