10 Golden Principles Of | Warren Buffett Pdf Verified
This principle is borrowed from Buffett’s mentor, Benjamin Graham, the father of value investing.
The Principle: Price is what you pay; value is what you get. You should never pay a fair price for a great company; you should pay a discounted price. This difference between intrinsic value and market price is the "margin of safety." It acts as a buffer against your own analytical errors or unforeseen market crashes. If you calculate a company is worth $100, try to buy it for $60.
Before diving into the principles, let's address the keyword. Is there an official Warren Buffett PDF titled "10 Golden Principles"? 10 golden principles of warren buffett pdf verified
The short answer: No. Warren Buffett has never published a short eBook or pamphlet with that exact title. The "10 Golden Principles" is a curated framework created by value investing experts based on his 60+ years of letters and interviews.
The verified sources: You can build your own verified PDF by downloading the following legal, free PDFs from the official Berkshire Hathaway website: This principle is borrowed from Buffett’s mentor, Benjamin
However, to save you time, we have aggregated the ten most quoted, verified principles from those documents. Below is the canonical list.
Download this checklist as part of your verified PDF: However, to save you time, we have aggregated
| # | Principle | The Question to Ask Before Buying | | :--- | :--- | :--- | | 1 | Circle of Competence | Do I truly understand how this business makes money? | | 2 | Margin of Safety | Is this price at least 25% below what it is worth? | | 3 | Mr. Market | Am I buying because of news (bad) or value (good)? | | 4 | Forever Holding | Would I hold this for 10 years if it never quoted a price? | | 5 | Economic Moat | Can a competitor kill this business by tomorrow? | | 6 | Business Owner | Would I want this CEO running my family business? | | 7 | No Debt | Could I survive a 3-year market shutdown without selling? | | 8 | Psychology | Is everyone else buying this? (If yes, run.) | | 9 | Integrity | Has management lied about earnings in the past? | | 10 | Patience | Is this a "fat pitch" or just a swing? |
These principles are best verified by reading the primary sources directly. You can download the official PDFs for free from the Berkshire Hathaway website: