Buffett’s two fundamental investing principles


Slow and steady wins the race — Buffett returns to his theme of long-term investing in this year’s letter to investors. His advice? “Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick “no.” Focus on future productivity — Buffett’s second fundamental investing principle is to avoid speculation and make investing decisions based on the future return of an asset. He says, “If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on.”

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