In a press conference on 5/4, Warren Buffett spoke these words of advice to would-be investors:
“You should be able to write down on a yellow sheet of paper, ‘I’m buying General Motors at $22, and GM has  million shares for a total market value of $13 billion, and GM is worth a lot more than $13 billion because _______________.” And if you can’t finish that sentence, then you don’t buy the stock. [he mentioned GM for example purposes only.] All this requires some temperamental detachment from other people’s behavior. Both Charlie and I have a natural instinct in that direction. We value our opinions more than others’ — perhaps to an extreme!”
Buffett goes on to explain his philosphy of buying stocks. He commends the stock shopper whom looks for the bargain, those stocks who are already low. The lower stock prices enable the shopper to purchase more of something, at a better price.
This might be really simple and basic common knowledge to many, but it’s the strategy that Berkshire Hathaway will continue to use for success according to Charles Munger.