How To Invest Like Warren Buffett

There is a very interesting book that was published earlier this year by John Wiley & Sons entitled, "Trade Like Warren Buffett" - and the author is James Altucher.

This book talks about one of the ways that Warren Buffett buys stocks which is to know the maximum price for which that stock will sell - right down to the penny. He then holds the stock for six months and collects an annualized yield of 9.5% to 13%.

The process that Buffett uses is called merger arbitrage, and this is how it works...

A company announces that it has entered into a merger agreement to be acquired at a certain price per share, and Buffett would then buy that stock below that price.

It's as simple as that, and Buffett claims that you can make 50% a year doing this. In fact, if you did nothing but merger arbitrage you could make a lot more money in stocks in a much shorter time.

How much more? Well the book contains an interview with a hedge fund operator who claims to have made 65% per year for five years doing this. So if you'd like to make some serious money investing, then it may pay you to learn all you can about merger arbitrage!

* * * * *