Thursday, June 17, 2010

"Women's" Secrets of investments billionaire Warren Buffett

Often, when someone utters the phrase "as a woman" or "as a woman, against anyone, but especially men, in memory pops up a pejorative connotation of such characteristics. Been expressed as if wished to emphasize a certain lack of balance, and sometimes characterized by lightheadedness.

This attitude goes back to childhood, when boys in the sandbox, ordered to be restrained and serious, and the expression of emotion, attachment to reality and focus on human relationships rather than competition, linked to the behavior of girls as boys in the sandbox sounded very painful. However, when it comes to investments, the picture seems quite different light, especially at the mention of the famous oracle of Omaha Warren Buffett, chairman of Berkshire Hathaway, which has made itself one of the richest people in the world, using the methods of management of funds, which are more inherent in women investors.

If someone told Buffett that he invested "as a woman", then with high probability, he would have smiled and something thanked the speaker, for example, a box of sweets. Buffett inexplicably feels the market by investing their money when it is most rational, and receives significant revenue, while others spend huge amounts of money on commissions to brokers and analysts to keep up with market movement, but often with nothing.

The secret of the oracle of Omaha is very simple. Its strategy differs from those principles, which professes the majority of investors-men. He waits a long time and provides an insightful analysis. He waits a time when the stock price drops to the strip, which he thinks best, and then hold the paper for as long as it is he needs to make a profit. However, he rarely parted with their investments, as it leads a very modest lifestyle and do not require huge amounts of money to burn them. In fact, it is antitreyderom and antiskalperom, for which the main strategy is to participate actively in the market and committing multiple transactions.

This is what characterizes his style of investing, which is determined by the strategy in the market "as a woman." What distinguishes women from men when it comes to investments?

Women spend more time on research and market analysis, when they select an object for investment, allowing them to avoid "hot" papers and futile pursuit of market sentiment, which often weakens the investment portfolio of men.

Men and a half times more likely to commit the transaction and, although more men are sure, they often become too self-confident in their abilities. However, it is frequent transactions reduces the medium-and long-term return on stocks, not to mention the cost for brokerage services. Therefore, women in the long run can count on higher incomes, as well as savings from a small number of exchange commissions and taxes.

According to the University of California, Davis, investment portfolios of women at 1% -1.5% portfolio return men, and some representative of the "weaker sex" often wins the competition for the portfolio, rather than by the "stronger sex".

When women decide to invest in specific securities, they pay attention not only on financial performance, but also to other, seemingly insignificant to the market, details. They often choose the shares of those companies for which they have formed a positive view, that the company is honest and responsible. The effectiveness of such investments is confirmed by historical data, as companies with good products, openness and honesty are more stable in the market and face fewer problems with the law, and thus costs for the payment of fines, compensation and other expenses of image that so negatively affect the overall financial position.

Many of these principles and are components of Buffett's investment strategy, which distinguish it from speculators, who with bulging eyes and spiky hair trying to keep up with traffic "bullets" or guess the direction of the graphs on the screen. Patience and informed decisions - these are weapons of Buffett's and women investors on the path to success in stock market gains.

In addition, women also have a keen eye to identify those companies that are doomed to success. Usually they avoid shouting innovation and brilliant gadgets that spill into the market, and then disappear, focusing on the products they need daily. They find it in conventional retail stores, then measure it in an annex to his constant needs and not for the sake of fashionableness "hot" product, which in addition to its marketing appeal, is not required in everyday life. This is often a way that shares the producer of such "new" product is already warmed up on the market, and results in the next few years totally speculative to justify the price for the shares.

This may seem too conservative, but it is a principle of selection of objects for investments Buffett brings in significant revenue. Many years ago, Buffett has invested heavily in shares Coca-Cola and Gillette, which is now owned by giant Procter & Gamble). The papers of these companies fully meet the principles of clarity investment and daily needs of consumers. It is hardly necessary to say that these papers have shown growth, which outpaced the market, and in times of economic crisis they were in no hurry to fall after the heated stock, as. Com industry in the early 2000's, and financial companies, which were in apparent disfavor investors in late 2007 because of the mortgage crisis in the U.S..

Buffett is not alone in its strategy of investing "as a woman." The legendary manager of the investment fund, Peter Lynch (Peter Lynch) was very grateful to his wife for the idea of investing in securities manufacturer diaper company Hanes. At one time the shares of this company has the most significant share in the structure of portfolio investment fund Fidelity Magellan. He also often said that following the purchases of their minor daughters, to find suitable ideas for investment. It is possible that examples of America seem too far for the Russian market, but even in our somewhat undeveloped market, there are stories of success, which could prompt investors "as a woman." Even before the consumer boom in World, which took place in recent years, investors "as a woman, demonstrated by their behavior that paper retailers can become profitable targets for investment.

It is possible that many investment "as a woman" will seem dull and inefficient. However, an example of one of the richest people in the world Warren Buffett deserves respect, which means patience, a desire to get to the bottom of things, the ability to wait for the correct price and the desire to buy and hold rather than daily or hourly, speculation can be very useful to add a "feminine" trait to the experience of the investor. However, with high probability, your investment will not forget this and thank you high income.

Buffett himself in his 77 years continues to adhere to their "women's secrets" in investing. At a meeting of shareholders of the company on May 3, he stressed that he feels well, thanks to their diet - a bit of chewing gum Wrigley and some bars Mars, some See's candy and the Bank of Coca-Cola. In a playful form, he reminded his investors that the end of April it was announced on the participation of companies in financing transactions Buffett sweets manufacturer Mars Inc. on the absorption of chewing gum manufacturer Wm. Wrigley Jr., Which involves his company. In addition, Berkshire has long owned by See's Candies and the large block of securities Coca-Cola Co., That Buffett does not plan to leave as they continue to grow and produce quite high dividends.

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