THE world loves nothing better than a success story. And Warren Buffet, one of the richest men in the world, fits the bill perfectly.

How did a quiet man from the American Midwest start with USD 100,000 and build it to $35 billion? The answer is terribly simple.Through stubborn adherence to the time-honoured fundamentals of value investing.

If you had invested $1,000 in Warren Buffet's Berkshire Hathaway stock in 1965, we would be worth roughly $5 million today. If you missed this investment opportunity, author James Pardoe gives you a step-by-step guidebook to follow Buffet's footsteps in the book, How Buffet Does It.

Here are some pointers from it with my comments as well.

1. Choose simplicity over complexity
When investing, keep it simple. Do what is easy and obvious. If you don't understand a business, don't buy it.

We recommend you to read Get rich. Do NOTHING!

2. Make your own investment decisions
Don't listen to brokers, analysts or pundits. Figure it out for yourself. Become a value investor. It has proven to be a very rewarding technique over the long term.

3. Maintain the right temperament
Let other people overreact to the market. To succeed in the market, you need ordinary intelligence. But you also need the temperament to help you ride out the storms and stick to your long term plans. If you can stay cool while those around you are panicking, you can surely prevail.

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e-mail: Kanu Doshi

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