Copyright 2017.

The Warren Buffett Spreadsheet

Portfolio strategy for value investors:

● 15-20 stocks
● Different countries
● Different industries
● Non-correlated stocks
● Estimate intrinsic value for each stock
● Re-estimate intrinsic value for your stocks once per year.
● Sell a stocks that has underperformed its own market after exactly 3 years. Keep the
rest if they still are trading below 150% of its intrinsic value
● Sell a stock if it reaches 150% of its estimated intrinsic value
● Focus on micro, small and mid-cap stocks
● Check your portfolio value maximum once per month.
● Build up your portfolio to the recommended amount of stocks gradually, be patient
and wait for the “fat pitch”
● Be contrarian
● Be fearful when others are greedy and greedy when others are fearful
● Consider to increase you position if the stocks has fallen 25% of your buying price, if
the fundamentals and story still is intact.
● At least 50% margin of safety
● Minimize numbers of buy and sells
● Hold cash if you don’t find any really attractive stocks
● Never fully invested. At least 10% cash
● In general; avoid cyclical stocks
● Try to invest in smaller markets and smaller stocks that is less effective priced.
● Try to look for stocks that is low risk (low debt) but high uncertainty about the future