5 Secrets of Warren Buffett's Success
4. Not Timing the Market
Though Buffett has a very strong view point on the price levels suitable to every single share but he never tries to time the stock market. Whereas most of other investors just do the opposite. They tend to time the market that is they try to predict when will be the good time to sell a particular stock so that they can fetch a good return.
5. Not Diversifying Too Much
Buffett likes to keep his portfolio limited and simple, and also believes in adopting straightforward investing strategies. "I want to be able to explain my mistakes. This means I do only the things I completely understand," he says.
He believes that keeping one's attention restricted only to some stocks and investment avenues, and not diversifying too much also helps. "Over time, you will find only a few companies that meet these standards -- so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist temptation to stray from your guidelines: If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes," says Bufett.
