Warren Buffett's Investment Tips (21 Gold Tips)
Warren Buffett's investment advice can be said to be gold investment judgment and solid wealth-building strategies. He is the veteran expert, who was able to build huge wealth without a specific patent, or the progress of a technician, or a legacy that helped him in that, or a legacy on which he relied, or a job with a large salary, but he built his empire with investment tools available to everyone, with wisdom, wisdom, and investment Smart, hard-working.
The advice of Warren Buffett, the greatest investor of the era, that you will know shortly after you may not have heard about it before, other than the famous about him, like his famous saying in spending, “Don't buy what you don't need, there will come a day when you will have to sell what you need.” Or what he said in saving: “Do not save what remains after spending, but spend what remains after saving.” Or his wonderful wisdom of taking the risk "Don't test the depth of the river with both feet."
In this article, we will look at more precise aspects of the personality of the successful investor.
Warren Buffett's Investment Advice (21 reviews)
1- Warren Buffett says: “For a long time, Graham (the owner of the Smart Investor Book) taught me that price is what you pay, but the value is what you get, whether we are talking about socks or stocks, so buy quality goods when their prices drop.
2- Successful investment requires time, discipline, and patience. No matter how great talent or effort is, there are some things that take time, that you cannot produce a baby in a month by getting nine pregnant women.
3- Opportunities come rare, so when the world rains gold, put a bucket, no thimble. (Thimble is the funnel that covers the tip of a tailor's finger to protect it from pricking needles.) The intention is to take advantage of opportunities whenever the best possible use comes.
4- Diversification of investments is originally protection against the ignorance of these investments, so it makes sense that this diversity is little for those who know what they are doing.
5- The key to investing is not to assess the extent of the influence of this industry or product on society, or to what extent it will grow, but rather to determine the competitive advantage of any particular company and, above all, determine the durability of this competitive advantage.
6- Of Warren Buffett's advice also: “It can take 20 years to build a reputation, and demolishing it will only take 5 minutes. If you keep this in mind, Inevitably, you will do things differently. Gaining the trust of people is an invaluable asset. ”
7- It is better to spend time with people who are better than you, since selecting partners who have better behaviors, their good behaviors will be reflected on you.
8- Warren Buffett says, "I will tell you how to be rich, be afraid when others are greedy, and be greedy when others are afraid." This is Warren Buffett's strong advice, and it means: The key to investing is to buy while prices go down and to sell when it goes up when prices drop, everyone is reluctant to buy; Fear of further decline, then you have to buy. When prices rise, everyone stops selling. To make more gains; Thinking they will continue to rise, then you have to sell.
9 - It is much better to buy a "wonderful" company at a "reasonable" price than to buy a "good" company at a "wonderful" price.
10- The difference between successful and really successful people is that people who are really successful say almost no to everything. Buffett, by saying this, means that success requires intense focus. There are many people who have long-to-do lists and work to be more productive, while in fact, owning a not-do list is more important if he wants to. The person can do great things.
11- Learn from people’s failures more than their successes: Buffett believes that people have more lessons and lessons than their successes, so these lessons should be well absorbed; She is the biggest teacher.
12- Reinvesting Profits: Warren Buffett learned this strategy early, in high school he and his fellow bought a pinball machine; To put it in a barbershop. And with the money they earned from them they bought many of these toys until they reached eight, they were spread in various shops. When they sold the project, he used his returns to buy shares and start other small businesses. At the age of 26, he raised $ 174,000, equivalent to today $ 1.4m. What is meant is that even if the amount is small, it can turn into a large fortune.
13- Explain everything related to the deal or business before it begins: Buffett explains that your negotiating power or the amount of influence you have on bargaining is always greater before you start working, and this is when you have something to offer the other party. Buffett learned this lesson harshly, as a child; Where his grandfather, "Ernest", employed him and another friend to remove the snow that was covering his grocery store, after a snowstorm struck the place, Buffett and his friend were bulldozing the snow for five hours continuously, until their hands almost froze, then his grandfather gave them 90 Just cents to share. Buffett was then shocked, how did he do all the hard work in exchange for this meager wage? From this point on, Buffett was tightening all deals by clarifying all their details before starting them with everyone, including friends and relatives.
14- Investing in companies and institutions that pay attention to small details: Warren Buffett invests in companies managed by managers who scrutinize the smallest costs such as the company that calculates the number of toilet rolls, and makes sure that it is actually 500 sheets. To find out whether she was deceived or not.
15- Reducing Borrowing: Live on credit cards and loans will not make you rich. Warren Buffett never borrowed much. He receives many heartbreaking messages from people who believed that borrowing was manageable, but that they had become overwhelmed with debt.
16. Learn to save: Buffett says, “I think the greatest mistake is not saving savings habits early enough; Savings are usually to be acquired. ”
17 - Be persistent: With perseverance and creativity, you can beat a more established competitor. Buffett acquired Nebraska Furniture Martin 1983, for his love and admiration for the way Rose Blumkin, the Russian immigrant company, who was able to build this company initially with a loan from her brother in the amount of $ 500, and with the money saved from selling used clothes; To become the largest furniture store in North America, where its strategy was to sell products at prices much lower than competitors so that its major competitors agreed with manufacturers to prevent their supply, so it contracted with manufacturers outside the state and continued to sell their products less than their competitors as they were And she is ruthless bargaining, says Buffett. It embodies the unwavering courage, which makes the underdog a winner, and Buffett always beats Mrs. Rose's style of management.
18- I know well when to stop: When Buffett was a teenager he went to the race track, and then he wagers on a race, but he lost, and in order to make up for his loss he bet on another race, and lost again, to return empty-handed, then Buffett felt very tired from what Event; He lost nearly a full week’s earnings. Buffett never repeated this error. Also, this is one of Warren Buffett's most important investment advice. "You should know well when to get away, or give up for a loss, and don't let anxiety trick you into trying again."
19- Invest in yourself: Buffett says, “Invest yourself as much as possible when you can, you are your biggest asset so far.” He also says, "Anything that you invest in yourself will be ten times the return to you." And unlike other assets and investments, your own assets, which are yourself “nobody can reserve for tax, for example, or steal from you.”
20- Learn about money. Another tip from Warren Buffett's advice. Part of investing in yourself should be learning more about money management. As an investor, Warren Buffett emphasizes that a large part of his job is to reduce exposure and reduce risk and that the risk always comes from those who don't know what to do.
21 - Charles Munger, Vice President of Berkshire Hathaway, who is very close to Buffett, says the secret of Warren Buffett's success is that he is learning constantly. So Warren Buffett's best advice to get caught is to commit yourself to lifelong learning.