Warren Buffet 's decision to buy $10.6 billion dollars of a company is a tip we can use for profits
65 | Amazon Price: $11.82 List Price: $18.95 |
 | Amazon Price: $19.95 |
 | Amazon Price: $31.09 List Price: $59.99 |
Buys 10.6 billion dollars of IBM stock
Buffet recently discussed IBM stock and why he bought 10.6 billion dollars of IBM stock, a 5% position in the company. I quote "I felt they had this terrific reverence for shareholders," "They're honest with their shareholders. They tell their shareholders what they expect to accomplish and they expect to be held to it. They repurchase shares on a big scale. . . . They have taken down their overhang by 200 million shares. They have done all kinds of things right."
His comments provides us with a clue what stocks we should be considering to buy. When you consider most analysts had placed a sell position believing IBM was overpriced, Warren Buffet was again buying shares when investors were selling believing they were wrong. Mr Buffets reason, value based on the value a company places on its shareholders. Find a company who
* is honest
* Buys back shares indicating the company believes the stock price is a great value
* They are accountable to their investors offering factual financials and news releases that are real.
All of this information is available to investors allowing each of us to determine for ourselves if a company is honest. Does a company meets it annual objectives and goals. Does their profits and financials make sense? Are new releases filled with facts and not generalities or wish lists?
As you review the companies news releases and annual reports ask yourself if this company meets the investment criteria of Warren Buffet and you, as an investor. If it does, ask yourself, Would Warren Buffet buy shares at this price? If you can say absolutely yes, then it is a company to consider investing in. If not, go on to another company and ask yourself the questions again until you find the one company you discover your are comfortable buying.
If you are right, then over time, profits will be realized along with the fact you are on your way to being a Warren Buffet of your finances. Learn more about what stocks to buy from MSN
http://money.msn.com/stock-broker-guided/10-stocks-to-watch-in-the-week-ahead.aspx
