Warren Buffett's 2016 Shareholder Letter: Top 5 Lessons for All Investors

Warren Buffett's 2016 Shareholder Letter: Top 5 Lessons for All Investors

23 comments: Warren Buffett's 2016 Shareholder Letter: Top 5 Lessons for All Investors

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  • ahmad        
    N. Naresh Kumar Singh
    nov 01,2018 at 07:11 - Reply

    Stockaxis is very well iam very happy thanks

    • ahmad        
      Team StockAxis
      nov 06,2018 at 01:37

      Dear N. Naresh Kumar Singh,

      We thank you for your appreciation, Sir. We promise to keep serving you the best possible way and help you take the best decision in the market

      We also recommend you to also read following blogs.

      Using the EV/EBITDA multiple smartly!

      Use The P/E Ratio Smartly!

      Regards,
      Team Stockaxis

  • ahmad        
    Subodh Kumar
    apr 08,2018 at 07:52 - Reply

    Hello sir / madam I am happy to connect with u. I am encouraged by every message sent by u. I am 23 yrs old, a completely fresher to any stock market like equity . i desire to invest in the equity. I want to start investing with smaller and then larger and larger . Want to start investing with minimum risk and larger and larger risk. Thnx ur team

  • ahmad        
    Ram Vade
    apr 06,2018 at 12:29 - Reply

    Stockaxis executive guide very well & I am very happy to connect stockaxis. Thank's

  • ahmad        
    Chandra
    mar 17,2018 at 06:45 - Reply

    Good blog. Nice information and the interpretation was excellent, the information provided to make suiting the Indian market conditions. Great job, thank you for sharing very important information.

  • ahmad        
    Santosh prabhu
    feb 11,2018 at 08:34 - Reply

    After reading your significant 28 pages, just I understand that why I was not earn any single paisa of gain from this stock market. Really you are giving a nice e.g.Thank you very much.

  • ahmad        
    Mr Taga
    jan 22,2018 at 12:26 - Reply

    As is this name "STOCKAXIS " is super beautiful name for an equity advisor, we, as a very small retail investor have the greatest hope of making it to WARREN BUFFET level through you,Sir.

  • ahmad        
    Harshwardhan goel
    sep 27,2017 at 01:41 - Reply

    Stock axis team, u guys are doing wonderfull job, keep up the good work, focus on continual improvement. Wish u guys good luck.

    • ahmad        
      Team StockAxis
      sep 27,2017 at 04:11

      Hello Mr. Goel,

      Greetings!

      Thank you so much for recognition. We really appreciate your encouragement and kind words and happy to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    Shubham Singh
    aug 31,2017 at 03:28 - Reply

    Good blog

  • ahmad        
    Prasad.B
    aug 20,2017 at 05:13 - Reply

    Eye-opener app. Thanq TEAM STOCKAXIS.

    • ahmad        
      Team StockAxis
      aug 21,2017 at 05:02

      Hello Mr. Prasad,

      Greetings!

      Thank you so much for recognition and encouragement.

      Happy Investing!

  • ahmad        
    Maitrik Shah
    apr 14,2017 at 07:19 - Reply

    Thank you very much Team STOCKAXIS. it is very useful explanations given by both your team and Mr Warren buffet. Very informative and useful for people like me who are in early thirties of their age. If you please give hint or provide information about companies having huge potential to grow more and more but available now at bargained price. The sectors which have come recently in lime lite like agricultural and infrastructure. Thank you.

  • ahmad        
    Ashok Wadhavkar
    mar 11,2017 at 12:21 - Reply

    Sir, I m at the age of 73 yrs but i still hope the investment will give good refunds to my loved ones. Thanks for increasing my hopes

    • ahmad        
      Team StockAxis
      mar 17,2017 at 11:35

      Hello Mr. Ashok,

      Firstly, thank you very much for trusting us with your investment advisory needs. And yes, it is our goal at StockAxis to enable all our subscribers to make informed investment decisions, that too by emulating the best and the most successful investor in the world.

      We would also suggest you to read Nifty50 At 9150!!! But Do These 'Levels' Actually Matter? for further insights and clarity on how to look at the current market scenario.

      Happy Investing!

  • ahmad        
    SAGAR KIRITBHAI SHETH
    mar 10,2017 at 12:14 - Reply

    RESPECTED SIR, WHAT IS YOUR MEDIUM TO LONG TERM VIEW OF PHARMA SECTOR LIKE AUROBINDO,DIVIS,GLENMARK ? WHEN TRUMP'S FEAR ENDED ?BULL RUN OF PHARMA SECTOR ARE OVER ?

  • ahmad        
    Chalapathi
    mar 10,2017 at 10:47 - Reply

    Wonderful explanation comparing to Indian markets.

    • ahmad        
      Team StockAxis
      mar 17,2017 at 11:38

      Hello Mr. Rao,

      Thank you very much for your remarks. We are pleased to see that you found our blog useful.

      Happy Investing!

  • ahmad        
    KUMAR DHUV
    mar 09,2017 at 11:33 - Reply

    Thank you very much for sharing your views and experience and caring for investors. We do believe that we will be getting your tips dos and don"ts time to time. Truly yours

    • ahmad        
      Team StockAxis
      mar 17,2017 at 11:44

      Hello Mr. Dhruv,

      We are very happy to see that you've finding our blog section useful. And yes, we'll be coming up with such articles on a regular basis.

      In the meanwhile, don't forget to read Nifty50 At 9150!!! But Do These 'Levels' Actually Matter? for further insights and clarity on how to look at the current market scenario.

      Happy Investing!

  • ahmad        
    Nandlal Gadiya
    mar 09,2017 at 07:37 - Reply

    Dear Sir, thank you for making letter available for us to read. It helps us to think differently. It's a great learning g experience !!!

    • ahmad        
      Team StockAxis
      mar 09,2017 at 10:36

      Hello Mr. Gadiya,

      Thank you very much for your remarks. We are very happy to see that our blog was useful to you in gaining a different perspective towards investments. We hope that you will help us advocate the concept to your fellow traders too. Also, don't forget to read New Products and New Management - How do they facilitate stock price movements?. We would love to have your feedback.

      Happy Investing!

  • ahmad        
    Hasmukh patel
    mar 08,2017 at 11:09 - Reply

    Thanks

  • ahmad        
    Sanjit Kumar Singh
    mar 08,2017 at 10:23 - Reply

    I agree with yours or i can say warren guru advice. But million dollar question is only few hold the right stock for the right period thats why only few earn money in stock market. In India there is a great transition in the form of GST reform. Everyone is running for logistic stocks like gati, snowman or vrl but is this gst reform is only for logistic companies? Moreover no one knows how Indian economy reacts after gst implementation but one can assumes that the economy will suffer for a year or so. If this assumption is correct as states will be compensated heavily at the cost of centres fund than why we should not wait for few months to invest in this market where nifty is close to all time high. I am not saying that we can time the market or we should wait for a year to invest because no one can either time the market nor one can hold ones sip but one can keep some money in pocket to buy good stocks at cheap valuation if market provide that oppurtunity. Moreover market every year provide minimum two oppurtunity in a year by giving minimum ten percent correction. I am eager to know your view on my above statement. At last I thank you for sharing such a valuable article with us.

    • ahmad        
      Team StockAxis
      mar 09,2017 at 02:44

      Hello Mr. Singh,

      Thank you very much for expressing your views on our blog. And yes, it is absolutely true that no one knows how exactly will the Indian economy absorb the GST when it materializes, but assuming the transition time for the same too, would not be beneficial. Sir, you are even spot-on when you mention that we cannot time the market. That's a 100% unerring. It is the job of a smart trader to time the market and not a smart investor. The latter has only one job: finding the next big thing (stock) in the market.

      Hence, for investors, the long term ones, the task is quite simply set out - find high growth companies, meet their managements, prepare forecasts and wait for the company to corroborate them via their following quarterly earnings. The better the research, the better the chances are of success. It is then, that the traders come into the picture to try and make the most of the situation that the investor already forecasted.

      Also, the fact that you mentioned that it would be wise to wait for a fall to buy, would not actually be the wisest thing to do. Here's why: Sir, for long term investors, it is all about valuations. It doesn't matter if the Nifty is trading at 9000 levels or 8000 or even 6000 levels for that matter; if the stock is trading at an underpriced valuation, it is an automatic buy. And if market sentiments further underprice it, one can buy even more of that company, now at an even cheaper rate, only to enjoy the pleasing gains when the market realizes its true potential. Hence, a sound and a growing business model, with an acceptable or an underpriced valuation is all that an investor needs. The couple of falls that the market 'might' witness should only be used to further increase your allocation towards your research, and this is what we have been following since our inception.

      The most recent example being, when we recommended Zuari Agro Chemicals Ltd. to our paid Multibagger package subscriber first on 18th Oct 2016 (before Demonetization), the price range for the same was around Rs. 215-220. A month later, when the market started to witness one of its biggest yearly falls, the stock after gaining some 15-18%, again was available at its BUY levels of Rs. 215. Hence, we made our clients add more of Zuari in their portfolios rather than waiting for the market to settle. The thinking was simple, if Zuari would have become even more cheaper, we would have further increased our allocation, because of our surety on the company's and the sector's growth story. We had, via our blog, on 2nd August 2016 itself, communicated to our clients that the Indian fertilizer industry was on the cusp of a revival. Zuari was then trading at Rs. 170-175 levels. Two months later, when we were not only bullish on the sector, but were also convinced with its implications on Zuari, we gave a BUY call on the same, even though it was trading at a good 15%-18% premium over its August 2016 price.

      But that did not stop us from recommending it, as delaying it would only have increased its price further, making it even more pricey. We are also happy to say that Zuari made a high of Rs. 380 i.e. a ~80% gain in just 4 months, where we booked some profits.

      Hence, the bottom-line is, if you are confident on your research, market levels and sentiments are just secondary, the primary being only and only research + valuations.

      Do let us know if you think otherwise or if you would like share some of your own views on the same. We would love to hear from you.

      Till then, Happy Investing!

  • ahmad        
    P Pradeep Kumar
    mar 08,2017 at 08:59 - Reply

    Dear Sirs, i found the news letter very interesting and true. In most of the occasions I was a victim to the scary/ emotional media news. Thanks for sharing such wonderful fundamentals of market moods. I gained courage to stay cool in adverse conditions. Regards Pradeep Kumar

    • ahmad        
      Team StockAxis
      mar 09,2017 at 10:31

      Hello Mr. Kumar,

      Thank you very much for your remarks. We are very happy to see that you've found our blog useful. It is goal at StockAxis to help all investors make informed decisions. You can read our article Fear & Greed: Don’t Let Emotions Come In The Way Of Your Stock Market Success for further insights into investment methodologies and a further clarity on how to actually look at the news from the financial press. Please do read the same and we would love to hear more from you.

      Also, do let us know if you have any queries related to the market or any stocks, we would gladly assist you; you can comment here in the blog, or write to us at research@stockaxis.com

      Happy Investing!

  • ahmad        
    M B AGRAWAL
    mar 08,2017 at 08:48 - Reply

    Beautiful article. Thanx for sharing. Nicely explained.

  • ahmad        
    sivagurunathan arumugam
    mar 08,2017 at 08:07 - Reply

    V.Good and Most useful sir Dr.siva

  • ahmad        
    Hemant shah
    mar 08,2017 at 08:05 - Reply

    Best knowledge for long investment

  • ahmad        
    Manish
    mar 08,2017 at 07:14 - Reply

    Best knowledge

  • ahmad        
    DALIMBA
    mar 08,2017 at 07:11 - Reply

    Very useful information.We should think properly before we buy again.