2. Warren Buffett

“It’s Far Better to Buy a Wonderful Company at a Fair Price than a Fair Company at a Wonderful Price”

Warren Buffett is considered as the most successful investor in the world. He is not only one of the richest men in the world but also ha a sound financial knowledge, which is followed by numerous presidents and world leaders. World market moves according to his words.

Mr. Buffett is also renowned as a prolific teacher. His annual letters to the investors of his company, Berkshire Hathaway, is used in finance lectures in colleges of largest and prestigious universities around the world.

Mr. Buffett gives two prime advices to the investors: he says when you are evaluating a company; you should look at the quality of the company as well as the price. You should understand the balance sheets of the company, listen to conference calls and have confidence in the management. Once you have confidence in the quality of the company, then only you should evaluate the price. According to Mr. Buffett, if the company is of high quality, don’t expect to buy it at a bargain prices. Which means the price will be low if the company isn’t of good quality and thus just don’t buy it because the price is low. Sometimes good companies may have bad stocks. You should dig deeper to find out the reality. If the company still looks fine, buy it.