Investments and BankingCase 1: warren Buffett. In your own words, how would you briefly pardon the Ben Grahams theory of investing?Benjamin Graham (BG) believed that investment in most intelligent when it is most businesslike, he believed just in numbers and margins and heavy relied on quantitative analysis of monetary statements. He often referred as a passive investor -he looked for companies with knock-down(prenominal) balance sheets and no or little dept, high pull ahead margins. He invested cautiously, looked for value stocks, invested for the long term and was more on the safe side meaning no unnecessary risks.
BG too introduced, developed and influenced Buffett`s intellectual basics of investment and teaches methodological analysis how to identify good long term investments.
BG believed that emotions mislead and fury can force to make premature decisions. BG always looked from cool down side on market fluctuation processes to find a right moment to interfere.
. In your own words, how would you briefly develop the Philip A. Fishers theory of investing?Philip Arthur Fisher (PAF) was more active emblem investor who relied on quantitative analysis was ready to take larger risks doing research, evaluation and after purchasing stocks for companies with potentially good future growth in combination with good management.
As easy as BG he relied on conservative investment principles facial expression for high profit margins, high return on keen etc., but differing from BG PAF believed that it is worth to spend more time, interest, and possibly stress for more specialized knowledge to find out exceptional(a) buys in the market. PAF strategy was to acquire stocks when they are at historically low prices. He was more as a somebody of the future, a prudent one.
. Why did Mr. Buffett avoid investing in technology stocks during the dotcom boom in the late 1990s?Warren Edward Buffett (WEB) as his...
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