ValueSoft

Ever since reading about Warren Buffett's success in the stock market year after year, I have had two goals. The first was to understand how Buffett does it. The second was to describe his methods in clear terms so that anyone can do it.

Suppose you invest $10,000 in the stock market for an annual return of 30%; at the end of 10 years you will have over $130,000. If each year you added another $10,000, at the end of this time you would have the incredible amount of $550,000. Of course, if you were like me, you probably think returns of 30% in the stock market are impossible over a long period of time.

This is not the case. When you read about Warren Buffett you learn that he has been averaging around 30% in the stock market not for 10 years, or 20 years, but for 47 years! Not only that, he has been doing it with conservative, long-term investing.