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Warren Buffet¡¯s investment secret
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¢Á Who is Warren Buffett
Name: Warren Edward Buffet
Born : August 30, 1930 (age:81)
Omaha,Nebraska,U.S
Education: University of pennsylvania
University of Nebrask(BS)
Columbia University (MS)
Occupation: Chairman & CEO of Berkshire
Hathaway
Years: 1951-present
Salary $100,000
Net Worth: $ 50 billion (2xxx)
(Samsung Net profit :$ 13.67 billion (2xxx))
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What is the Value investing?
Price of stock ¡Á Value of firm
¢Á What is the value investment?
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¢Á The principle of Benjamin graham
Benjamin Graham wrote ¡°The Intelligent Investor¡± on his investment theory. Buffet said that Famous investor Warren Buffett described it as "by far the best book on investing ever written"
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¢Á When to buy a stock based on gra¡¦(»ý·«)
(A) Buffet
(B) S&P
31.8
-22.1
(A)buffet
(B)S&P
3.65
14.31
25.99
16.75
7.72
8.66
0
BUY&
HOLD
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Intrinsic value of stock
Value + Growth + Safety
¢Á When to buy the stock based on the buffet¡¯s strategy
I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.
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Coca Cola (Stock Value
¢Á Analysis of Company
1.Coca Cola
Year
EPS
Percent growth
Book Value per share
1979
$1.13
11.9%
$5.18
1982
1.32
9.1
6.82
1985
1.72
8.2
7.72
1987
1.43
17.4
8.66
1988
2.85
17.2
8.58
10-year
average
11.1%
6.5%
Most of purchase were made in 1988 and 1989, at the end of 1988, coca-cola¡¯s book value per share was $1.07, whereas the stock price was $5.7, giving it a market to book ratio of (PBR) 5.32 and PER of 16.8
Unit price: dollors
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Coca Cola (KO) Stock Value
¢Á Anal