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To: Steve Felix who wrote (117846)	2/5/2014 10:59:13 AM
From: bruwin	Read Replies (1) \| Respond to of 118717

" ... a young person would do much better ..... than reading Warren Buffet." Well, I'm not sure what exactly you are referring to with ... "reading Warren Buffett". Is that just about reading of Warren Buffett's place in the world of business or investing or ...? That, in itself, would make interesting reading, but my reference to Warren Buffett is more in line with putting into practice what he recommends in terms of identifying companies to best invest in. In that regard he targets specific items within a company's three financial statements and advocates setting specific targets to ratios that comprise those items. Once that's done it's a case of preferably having all, or most of them, simultaneously meeting or beating the percentage targets that he prefers to set. It's very rarely the case that a company that simultaneously meets or beats all those criteria is one that is performing poorly as a business. That, I would suggest, is a good place for young investors to start in their quest to find companies that are exhibiting sound financial fundamentals which, more often than not, go hand in hand with capital gain. There are so many very useful business web sites where financial statement information is freely available, so there shouldn't be obstacles in the way of a young investor to put Buffett's strategies into effect and very likely benefit from them. But there again .... to each his own ....

To: Steve Felix who wrote (117846)	2/5/2014 12:29:05 PM
From: JoJoK	Read Replies (3) \| Respond to of 118717

Even if someone tells you how to perform well in the long term, would you listen? All I can say is, an investor's role in the market is to provide capital to businesses. Ideally, the better businesses to invest in are the ones that can efficiently utilize that capital and generate steady FCF in a business cycle (the more defensible, the better). The best investors I've seen approach investing with this mindset, not with the mindset of a collector looking to construct a statistically average portfolio.