In my opinion, Warren Buffet’s philosophy appears highly reasonable and explicit. The primary message of his philosophy is consciousness in actions: investors should be realistic, competent, and patient and plan their business ahead.
I feel related to Buffet’s notion of “the lost opportunity”, a comparison of “an investment opportunity against the next-best alternative”. Besides, I agree with Buffet’s call for reasonable diversification: one should concentrate on the businesses they understand instead of attempting to secure business by investing in diversified branches.
Buffet’s views on the investment are wise and deliberated, and their efficiency is confirmed by the investment performance of Berkshire Hathaway. According to Buffet, a greater way to ensure safety is the ability to recognize and measure risks: “better to be approximately right than precisely wrong”.
Another distinguishing feature of Buffet’s philosophy is his definition of intrinsic value, described as “the present value of future expected performance” and its’ significance as a performance measurement tool. I agree that efficient business requires assessing an investment from a perspective of prospective returns compared to required ones. Reinforced by examples and clearly expressed, Buffet’s statements are justified and applicable to practice.