Invested

Do you long for the day when you can work less and travel more? Do you fear that you’ll never have enough money to be able to retire? By following Warren Buffett’s approach to value investing, you can learn how to build an investment portfolio that will give you the financial freedom you need. The key to Buffett’s approach is to look for companies that you can understand, that have an intrinsic and durable competitive advantage, and that have talented management. Then, calculate a good price at which to buy that company’s shares. Value investing does involve diving into the sometimes-complex world of financial statements, but with practice, you can figure out which are the most important numbers on any company’s Income Statement, Balance Sheet, and Cash Flow Statement, and use them to decide whether a company meets your investment criteria. Once you have calculated the right price for your target companies, wait until the share price falls to that level and then buy, confident in the knowledge that you have an anti-fragile portfolio that will not just give you a great rate of return but will also be able to survive the next – inevitable – market downturn.