EFASAND: HOW Buffett's theory and Romer’s Theory: How Both Theory Changed World

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Sunday, 10 March 2019

HOW Buffett's theory and Romer’s Theory: How Both Theory Changed World

Warren Barren and Romer are The Two great Name of Two Person, Buffet a Great Investor while Romer a Mind Blowing World's Best economist.

Buffett's Theory:-


Warren Buffet uses to Invest in value Based 
Investment plan. Warren Buffet founded or given the idea of intrinsic Based Investment  Plan.

Note:- 

●  Value Based Investment:- 

Value investing is a tactic of investment in which stocks that seem to trade for less than their book values are selected.

● Intrinsic Based Investment:-


The inherent value means an investor's perception of an asset's inherent value, like an enterprise, stock, option or immovable. 

Knowing the intrinsic value of an investment is useful for value investors whose objective is to acquire stocks and other investments at a discount of this value.

How Warren Buffet Uses to Invest:-


Buffett looks simple, like many successful formulas. But it's not just simple. Buffett uses 12 investment tenets, or major considerations, that are classified into business, management, financial measures, and value, to guide him in his decisions. 

Buffett's principles may sound cliché, but they can be very hard to perform, and easy to understand. For instance, one principle asks whether management is candid with shareholders.

His "circle of skill," companies by whom he can understand and analyze, which is restricted to Buffett firmly. Buffett regards this deep understanding of the company as a condition for a viable projection of the future performance of its business.

Romer’s Theory:-


The Romer's Theory is also known as Endogenous growth Theory.

Note:- Endogenous Stands For Internal Devlopment.

Theory of endogenous growth states that economic growth is mainly the consequence of endogenous rather than external forces. The theory of endogenous growth states that human capital investment, innovation and knowledge are important contributors to economic growth.

HOW Buffett's theory and Romer’s Theory: How Both Theory Changed World


The Buffett's Theory is Based on the theory persent today or past while Romar's Theory is the Theory of Future.

You might seen In past time, People were not interested in skills while they were interested in direct earnings. According to me future will be of The person who will Think or invest only in skills.

Both theory suggest how employment (job) will change in future. Today, approx 10 crore people of India is Under Skilled, while most of them get a job. In Future, there will no Under skilleed get a job.  

If We Talk About Romer's Theory, we will find that He states what will happen in economy of the future.

One Example:- you have heard about Google, Facebook and many more they are focusing only on skilled. You will surprise to know that If you are fully skilled in any computer Program you Will Get a Job.

More Analysis will updated soon............

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