Warren Buffett Way : Don't worry about economy

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The second step in Warren Buffett way of investing is DONT WORRY ABOUT THE ECONOMY. This is related to first step as Buffett says worrying about both stock markets and Economy are inconsequential. Investors should not worry about whether economy is growing or in recession, interest rates are growing or falling. If you do then stop it immediately, don't waste your energy in analysing the economy. There are two reasons for this: First: No one has economic predictive powers any more than they have stock market predictive powers. Second: If a person selects stock which would benifit by particular economic environment then he is inveting speculation.

Always look for business that has potential to profit from any economic environment, only percent returns may vary to a little extent. One should spent quality time while analysing the business.

Step 1 : Turn off stock market
Step 2 : Don't worry about the economy
Step 3 : Buy a business, not a stock
Step 4 : manage a portfolio of businesses