Friday, September 12, 2014

Financial Thought of the Day September 12, 2014: Think Publicly Traded Businesses NOT Stocks

Investing legend Warren Buffett had this to say when thinking about stocks:

"Shares are not mere pieces of paper. They represent part ownership of a business. So, when contemplating an investment, think like a prospective owner."

When people think about buying stocks they should think in terms of strategic advantages and barriers against potential competitors on the business level and how much they are willing to pay to own such an enterprise. The cheaper the better.

No comments: