• All blog entries
    • Calculators
    • Case studies
    • Cost of living
    • CPF Are You Ready?
    • CPF Matters
    • Credit Management
    • e-Learning
    • Estate Planning
    • Events
    • Financial advisers
    • High Networth
    • Insurance
    • Investments
    • Letters to the Press
    • Magazines
    • Others
    • Retirement Planning
    • Scams
    • Surveys
    • Tragic Stories
    • Unethical sales process
    • Videos
  • Legal
  • Testimonies
    • Individual testimonies
    • Gallery
  • My Account
Hi, looking for a fee-based financial planner in Singapore? Read this article now!
  • Home
  • About
    • About Wilfred Ling
    • Wilfred Ling from Client to Adviser
    • Why do you run your own professional financial planning practice?
  • FAQs
    • FAQs on Wilfred Ling’s Financial Services
    • FAQs on Financial Planning
    • FAQs on Investments
    • FAQs on Insurance
    • FAQs on Estate Planning
  • Services
    • Overview
    • Retirement Planning
    • Investment Portfolio Management
    • Insurance Planning
    • Young Parents
    • Helping Parents with Special Needs Children
    • Safeguarding your Assets from Creditors
  • Fees
  • Cool Tools
  • Contact
  • Subscribe
  • 17, February 2019
You are here: Home / Investments / What we can learn from Warren Buffett? Part 3

What we can learn from Warren Buffett? Part 3

5, September 2018 by Wilfred Ling Leave a Comment

This is a multi part article. For the previous article, you can read here: What we can learn from Warren Buffett? Part 2.

Treat the investment as a business

Unlike many investors, Warren Buffett sees his stocks as businesses. To him, it is possible to get a bargain by buying small pieces of businesses than the entire business itself. He ignores the market fluctuation since anything can happen to the stock market. He gave the analogy of buying a house for say $20,000. If someone comes up to you with a price of $15,000, it does not make sense to sell the house just because someone quotes a lower price. Yet, this is how many investors react - they sell their stock when the stock prices go down because they do not see their stock as business. What is a business? A business is an asset that is productive. Overtime, it delivers income to its owners. A non-productive asset, such as bitcoin and gold, does not produce anything. All an investor can hope is to sell the asset to the next investor at a higher price who thinks can sell the asset at an even higher price to some other guy.

Here are the relevant videos:  

As a financial adviser, it is my job to advice my clients not to look at the price return over a short-term period. This is hard. In the age of technology, we can now know the prices of the market and stock at every second. Yet, looking at the prices in this manner is not investing. It is just watching some random numbers provided by Mr. Market. If you treat investing as a business, you should not be asking what is the price today or even ask the question, “How is the market today?”.

In the next article, I will provide another reason why Warren Buffett is so successful.

Like this article? Subscribe to my newsletter below for more.

Get regular Tips on Financial Planning. Free subscription for 3 years. Covers all aspect of financial planning such as 'How much salary you should have?', 'How to avoid insurance that is not suitable?", 'What are the retirement planning methods?", etc

Share this:

  • Tweet
  • Print

Related

Filed Under: Investments

What do you think? Leave a comment. Cancel reply


WILFRED LING, CFA

WANT TO GET REGULAR TIPS ON FINANCIAL PLANNING?

JOIN with thousands of other subscribers in getting tips on all aspect of financial planning such as "What is the minimum salary required?", "How avoid insurance that is not suitable", etc.


WILFRED LING IN THE NEWS

Click HERE to find out more.


THE KIND OF CLIENTS I AM LOOKING FOR

NEW TO US?

Learn how you can fully benefit from this massive website: HERE

For Registered Users Only (free)

  • Monthly Pan Europe Update January 2019 21/1/2019
  • China Eases Monetary Policy Again, Now What? 10/1/2019
  • What’s New In China’s 2019 Outlook? 19/12/2018
  • Monthly Asian Monthly Roundup December 2018 14/12/2018
  • Monthly Pan Europe update December 2018 14/12/2018

View All

For Clients Only

  • Monthly Global Equity Update January 2019 25/1/2019
  • JPMorgan Guide to Market Q1 2019 15/1/2019
  • JPMorgan Perspective Q1 2019 15/1/2019
  • Monthly Global Equity Update December 2018 24/12/2018
  • Monthly Global Emerging Market Update December 2018 21/12/2018

View All

Top Posts

  • CPF Life Standard default plan is the worst of the two (22 June 2017 update to the new booklet) This article was originally written in 8 July 2014 and...
  • Strange way of how CPF Interest is calculated & retirement planning CPF has a rather strange way of calculating interest. I...
  • CPF: How to Accumulate $1m in your CPF by 57? I read from the CPF’s AREYOUREADY facebook about a man...
  • CPF Retirement Sum Scheme Although CPF Life is compulsory, there are those who wi...
  • Shocked that you cannot use your CPF for housing loan due to Valuation Limit? (Closed caption) Many HDB owners struggle with their mortgage installmen...

Recent comments

  • Alanna on Police report filed against A2A Capital Management
  • Alanna on Police report filed against A2A Capital Management
  • Russ on Police report filed against A2A Capital Management
  • Deb on Psychology behind the Singapore ‘chope’ culture and what we can learn to achieve our financial freedom
  • Wilfred Ling on Vanguard funds in Singapore at just US$ 20,000!
  • Jess on Vanguard funds in Singapore at just US$ 20,000!

To be notified of new blog post, like this facebook page

To be notified of new blog post, like this facebook page

Read articles based on different categories

Investment Login

iFAST Central: Login

iFAST Prestige: Login

Navigator: Login

Chartered Financial Analyst

CFA
5 years milestone in Continuing Education

Chartered Financial Consultant

ChFC

Featured Blogger

IM$avvy
© Copyright 2006-2019 Wilfred Ling. All Rights Reserved hollow-nasty
hollow-nasty
hollow-nasty
hollow-nasty