TIP482: How Warren Buffett Became the Greatest Investor to Ever Live (Part 1)
We Study Billionaires - The Investor’s Podcast Network
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Invest in What You Understand
Warren Buffett made the decision to invest only in businesses he understood, avoiding those with technology beyond his comprehension. He transitioned from cheap deals to buying great businesses, steering clear of companies like Polaroid and Xerox. His two rules were to abstain from investing in businesses with incomprehensible technology crucial to the decision and to maintain a passive investment approach. This principle highlights the importance of thorough understanding to endure market downturns. Despite Intel's success, Buffett refrained from investing due to his lack of understanding.
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