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9 Investing Secrets of Warren Buffett Secret #9

Monday, December 27, 2010 , Posted by the InCrediBLe at 6:14 AM

Become a conscious investor

THE FAMOUS GRAPHIC artist M.C. Escher said that “most of the time we are meekly sleepwalking on a treadmill.” In other words we are acting in an unconscious way and making little progress. This certainly applies to investing. Most of the time decisions are made based on either hope and wishful thinking or on abstract academic theories. T
Fortunately investing is an area that responds well to becoming more conscious of what we are doing and why. “Risk comes from not knowing what you are doing,” Buffett said.
The whole direction of Conscious Investor is to place your investing, and hence your financial future, on a firm basis of sensible and knowledgeable investing.
Yet there is another part of being a conscious investor and this is to invest in companies with products and services that you support and believe in. When you become conscious of why you want to invest in a particular company, then risk can be substantially reduced. Investing this way helps to eliminate many of the unknowns whether psychological, emotional or material.
As those who have been to an annual meeting of Berkshire Hathaway will know, Buffett gets great pleasure from using and talking about the products and services of the companies that he invests in or owns.
When you do this investing becomes easier and more fun. You don’t have the worry of having your money tied up with enterprises that you know little about. Also you will become a more astute investor since you are picking up signals about the economics of companies long before they show up in its financial statements.
Implementation using Conscious Investor
Putting it in a nutshell, my investing system, Conscious Investor, puts the consciousness back into investing. Instead of being a football kicked around by the confusing claims by the media and financial companies, Conscious Investor will help put you back in control of your money. You become conscious of what you are doing and why.
There is something more. As Buffett said, “we are interested in big numbers, but not to the exclusion of everything else.” Part of being a conscious investor is investing in a way that is stress-free and enjoyable. We do this by investing in great companies ― and letting them do the hard work each year in boosting their sales and earnings. It is a practical illustration of a phrase made by popular by the meditation teacher Maharishi Mahesh Yogi, “Do less and accomplish more.” With Conscious Investor you actually have the time to enjoy your success.

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