1 Warren Buffett Secret to Build Your Wealthhttp://www.fool.com/investing/general/2014/02/16/1-warren-buffett-secret-to-build-your-wealth.aspx Tyler Riggs
February 16, 2014
Let's be completely honest right off the bat: Few people have the same level of financial success as Warren Buffett. His innate ability to absorb and retain encyclopedic amounts of information is unearthly. However, there are investors using Buffett's wisdom to create their own path to success, and it's something you can do, too.
These "Buffett disciples" have found immense success not through trying to be a carbon-copy of the Oracle of Omaha, but rather through adapting his principles to their own unique backgrounds, personalities, and strengths.
Easy to find, hard to do
How did he do it? It's both extremely simple and incredibly difficult at the same time. The simple part is using a two-step method to find excellent businesses at cheap prices: Does the company earn a lot on its assets, and is it trading at a big discount?
Now comes the hard part: The reason these businesses are trading so cheap usually centers on the market's extremely negative, short-term attitude about the company. Greenblatt did so well in his investments precisely because he took advantage of this irrational mood to buy at a steep discount. Then, he patiently waited until the fickle market changed its mind about the company, realizing that the sky might not, in fact, be falling. Greenblatt says:
How does this help me?
Our ability to be patient with our portfolio is b