We can't mention Warren Buffet without mentioning this term;"Value Investing"


This term was coined by Ben Graham who was teaching Economics to Warren Buffet during at his college.

Warren learnt that term from him and after that day,life wasn't the same,It's like his vision changed completely.

What normal investors do is;Look at the financial statements of a company,check all the numbers,make some calculations,etc..

So for them the company is all about some numbers,but is this everything?

Because Warren Buffet was extraordinary he always looked further,he looked for the value of the company,it's brand,it's reputation and what people say about this company,because maybe a very small company with some loyal customers is better than a great company that it's customers could replace within days with any new alternative.

What Warren could teach us today is that investing isn't just about numbers,and if it was working that way mathematicians would be great investors,he himself said once that if it needed advanced mathematical skills he would still be selling coca-colas.

He also teaches us to look further than where people look,you gotta always drive the extra mile,make more effort than people do analyzing a company and seeing the value in it,if you aren't willing to walk the extra mile you'll be at the same place with everyone,so always look further,to reach further in life.


 The best advantage Warren Buffet had was the ability to assume what the future will be like, for sure we don't know what the future will look like, but if you have a long-term vision, you'll have the nearest thing to it.

 



The long-term vision was Warren Buffet's greatest advantage, he used to assume the influence of a certain thing in the future.

I'll tell you why a long-term vision is needed:

I'll give you an example that is not related to Warren Buffet but is relevant.

Samih Toukan (Co-founder of Souq.com which was acquired by Amazon and Founder of Maktoob and many other companies) when he started making "Maktoob" which is the Arabian Hotmail, the internet's users in the Arab world was so little, people then saw him as a crazy man who is risking everything for a potential win, after a couple of years it was a great success and was acquired by Yahoo.

This is the value of a long-term vision, to see what is coming before it even comes.

If a person looked only under his feet and doesn't see except what is in front of them, he will miss so many opportunities, So if Samih focused only on what is at hand, he would've ended selling candy maybe.

The long-term vision doesn't apply only in business and entrepreneurship, and for example, if I asked you what reading 5 pages add up to you?

If you have a short-term focus you'll see it as worthless and doesn't add up much, but if you have a long-term vision you'll see it as 18,250 pages in 10 year period, do you see the difference?

Warren Buffet always used to belittle people who buy stocks and sell them after a couple of days, weeks, or months aiming to get a low profit by doing, he used to buy stocks that he is willing to own for 10 years,15 years, or maybe forever.

Everything with a long-term vision is completely different, for that don't just look under your feet, look further than people do, to reach further than the rest does.

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