Refer to Warren Buffett\'s Annual Report online (his company is Berkshire-Hathaw

Question

Refer to Warren Buffett's Annual Report online (his company is Berkshire-Hathaway) and write a business message to me that tells me why Warren Buffett's Annual Report is understandable and informative. Look to the left of this assignment and you will find a link to helpful information regarding Warren Buffet and Berkshire-Hathaway. How does this explain why Warren Buffett's communication style helps to make him such a successful businessman?

--Use memo or email format
---Keep your audience in mind
---Include the "you" attitude
---Include an introduction, body and closing paragraph  
---Be direct

Explanation / Answer

Answer: Warren Buffett is not only a successful billionaire but also a successful communicator. He is a chairman of a number of diverse companies such as insurance, transportation, utility and energy, finance, manufacturing, service and retaining. Also, he invests by buying stock from international companies in different countries like China, EU, and East Asia.

To be a successful investor, you need to use due diligence. Spending wisely is not about being miserly, but about being smart. Invest in assets that give you good returns over the long term- one that helps you secure your financial future.

Instead of trying to time the market and extract every rupee profit you can possibly get out of your investment, invest in assets that will generate inflation-beating long term returns and hold on it for a long time (In buffet terms, forever).

Warren Buffet recommends investing in undervalued stock with great potential and holding on to them forever. In-line with this philosophy (which undoubtedly worked so well, and still continues to work), buying shares of a wonderful company at a fair price is much better than buying a mediocre company at a cheap/bargain price.

Many investors misunderstand this as a recommendation for investing only in Bank FDs or equivalent assets which are mostly considered safe. Investing in Bank FDs is almost always guaranteed to be a losing proposition over the long term since after-tax, the returns you get annualized are below inflation rate.

Be knowledgeable about tax laws and use them to your advantage. Before you invest, make sure you understand the tax implications of your investment.

https://scripbox.com/blog/6-investing-lessons-from-the-richest-man-in-the-world-warren-buffett

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