Investment Need Not be Chance or Luck

Despite Buffett's rather consistent and pervasive success, Wall Street "big boys" have continued to attribute these accomplishments to luck or chance. They posit that Buffett has simply been one of those "blessed" investors who, by randomness, has managed to pick winners. Buffett, however, insists that his financial fortune is the result of very specific axioms which he has practiced throughout his investment career. These axioms include the approach of Benjamin Graham, his graduate school professor, and his own strategical additions. Successful investing involves four basic activities: 1) A company being considered for investment must be thoroughly researched in order to gain an understanding of its intrinsic value and its long-term potential for sustained growth; 2) A stock should only be purchased when it is a bargain, that is, the price is less than the net profit and/or assets of the company; 3) Management of...