lessons learned from warren buffett's letters to shareholders

lessons learned from warren buffett's letters to shareholders

Warren Buffett's letters to shareholders 1957

1. The general market is priced above its intrinsic value

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1. Always pay attention to the detection of substantially undervalued securities
2. Always check the stock price with respect to its earning 
3. If stock price decline by 20% and earnings declined by 50% due to difficult business condition stock will decline by 50% in the future.

Warren Buffett's letters to shareholders 1958

1. Always devote your attention to the finding undervalued stocks
2. Your stock findings and returns will be better in a bear market if you find undervalued stocks
3. Choose a stock with very strong defensive characteristics
4. Higher the level of market there will be few undervalued stocks
5. If it is difficult to find the undervalued stock  then the market is overbought

Warren Buffett's letters to shareholders 1959

1. When mutual funds give double-digit returns the values of blue chips companies are speculative and there is a higher chance of loss in blue-chip companies in the future.

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