Warren Buffett is one of the world’s most successful investors and his investment advice is timeless. He just like many other investors and business men such as Bill Gates , made some mistakes in his journey but unlike others he learned from the mistakes and then made the right moves and made a lot of money. Thanks to the right moves that he made, he is now one of the most successful investors you will find on Earth. Many say that if you want to make money then you should follow his foot steps.
In this article piece we share with you some of the ten best investment tips by the investor that can help you get started on the right path to success:
- Simplicity is the best strategy
While relying on technology and using top-notch investment strategies can bring you quick returns, it is best to keep things simple. Buffett claims that his strategy was always to keep it simple and safe. For instance you could invest in businesses that produce products or service that people need on a daily basis. Any business that offers products or services that people need on a daily basis will definitely remain successful even in the long run.
2. Once you choose an investment, stay in it for long
According to Buffett, it is a good idea for you to choose an investment that you know you will remain focused in for a long time. An example of Buffett’s long term investment in the form of stocks that he bought back in the 1960s and he still holds on to this day is the stocks he bought in American Express. Buffett at one time remarked that those who are willing not to own a stock at least for 10 years shouldn’t even think about owning it for ten minutes.
3. Just remain focused in what you know
The investing success that Buffett has enjoyed over the years has been mainly due to the fact that he doesn’t overstep his boundaries. That said it is a good idea only to remain focused on investments that you understand.
4. Diversification may not be the best idea after all
Diversification may be good but according to Buffett, owning various stocks in different companies may come in your way to concentrating your highest quality holding.
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5. Don’t always go with the news
Exciting financial news can sometime be so tempting for investors and most have fallen into the temptation of going with the news with disastrous results. According to Buffett, it is best to always absorb the news but not make impulse investment decisions that are merely based exciting investment news available.
Also see: What are Mutual Funds and Types of Mutual Funds in India
6. Know the difference between price and value
Investors need to actually differentiate between the price and value. As a general good rule of the game, investors should put their efforts on good quality companies that are doing business at the best prices currently.
7. Great investment moves are those that are boring
When you invest in the stock market bear in mind that it is not a get rich quick kind of game. Great investments in fact are never that exciting initially but usually grow slowly and remain steady in the long run.
8. Only pay attention to those you trust and understand
According to Warren Buffett, it is only a good idea to only invest in trustworthy and competent investment management teams.
10. Never try to predict the future
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According to Buffett it is a bad idea for an investor to try guessing how the markets will behave in the future.
11. Know what you are investing in
According to Warren Buffett, it is best for an investor to invest in a business he/she understands better than that where trial and error is the deal.
One thought on “10 Best Investment Tips by Warren Buffett”
Great tips! Thanks for sharing.