I was about to write a series of articles entitled “Follow Warren Buffett’s signal on when to SELL stocks, when I realized that I still have not finished the third installment of the series on when to buy stocks. I first wrote “Follow Warren Buffett’s signal on WHEN TO BUY stocks-Part 1” last December 17, 2008. It was followed up by “Follow Warren Buffett’s signal on WHEN TO BUY stocks-Part 2” almost 2 months later that is on February 2009. I really thought I have uploaded part 3 of the series, but a search on the posts I wrote revealed that I haven’t uploaded it in my blog. Anyway here is the last part of this 3 part series. To read the previous parts just click on the links above. 3.) Individual calamity – Another good time when to buy stocks is when companies suffer individual calamity. These refer to situations when brilliant companies do something stupid ending up losing money or when something adverse happens to an individual company but nevertheless does not affect its … [Read more...]
Follow Warren Buffett’s signal on when to buy stocks – Part 1
Warren Buffett is undoubtedly the world’s best investor. Aside from his excellent ability to analyze a company’s fundamentals, he is also very good in knowing when to buy stocks and when to sell it. While knowing when to sell is quite tricky, knowing when to buy stocks the Warren Buffett way is easy. The ideal on when to buy stocks is to “Buy low and sell high.” Ironically most people only pay lip service to this fundamental principle on when to buy stocks because what most are doing is exactly the opposite. For example in 2007 people were asking the “experts” when to buy stocks. The “experts” said “now” in order not to be left behind. The Philippine stock index (PSEi) was at 3800 points (from a mere 1000+ points) The “experts” at that time were saying that it will reach 4400 points. At 3000 points, people want a slice of the action so they jumped into the band wagon and bought when stocks were at its all time high. The PSEi eventually reached 3800 points but never went … [Read more...]