Warren Buffett's 23 Golden Investment Tips - Ask The Rich

Thursday, May 10, 2018

Warren Buffett's 23 Golden Investment Tips

Warren Buffett 's  investment tips are taught in most business and economics universities and are applied to most investment banks because they are based on golden investment rules and solid strategies for wealth creation. They also call him the greatest investor of the modern era because he has built a fortune worth more than 85 billion dollars without a legacy to help him. Or left it based on it or technological invention, but he made this great wealth in investment methods available to all, by making rational decisions, control of emotions, investment in intelligence, and hard work.

"Whether in diet or in investment projects, the stomach is not the mind of determining the results. "

"Intelligence alone is not enough to ensure a successful investment, because the size of the mind is less important than the ability to separate the mind from emotions in making decisions."

Now let's carefully read some of Warren Buffett's investment tips and navigate through him to understand the mentality of this skillful expert. Tips You might hear for the first time. We will not tell you his famous saying of saving, "Do not spare what is left after spending, but spend what is left after saving." Or his brilliant wisdom about risk "do not test the depth of the river with both feet." Or his famous saying of spending "do not buy what you do not need, one day you'll have to sell what you need." In this article, we will focus on certain things and advice that you should focus on in order to improve the personality of the successful investor.

Warren Buffett 's Golden Tips on Investing

1. Opportunities rarely come, so when the world rains, place a bucket, not a thimble. It is intended to take advantage of opportunities when the best possible use is made.

2. Learn more about people's failures than their successes: Buffett believes that in people's failure lessons and over their success, these lessons should be well understood; they are the greatest teacher.

3. Limit Borrowing: Living on credit cards and loans will not make you rich. Warren Buffett did not borrow much at all. He receives many heart-breaking messages from people who believed that borrowing was manageable, but they were drowning in debt. His advice to these people was: Negotiate with creditors to pay as much as you can, then when you are free of debt, make some money you can use to invest.

4. Learn about money: Part of investing in yourself must be to learn more about managing money. As an investor, Warren Buffett emphasizes that much of his job is to reduce exposure and reduce risk, and that the risk always comes from those who do not know what they are doing.

5. Be persistent: With perseverance and creativity you can beat a more established competitor. Buffett took over Nebraska Furniture Mart in 1983 for his love and admiration for the way Rose Rose Blumkin ran her business. Rose Blumkin, a Russian immigrant who first built a $ 500 loan from her brother, The largest furniture store in North America, whose strategy was to sell products at significantly lower prices than competitors. Even its big competitors agreed with manufacturers to stop supply to them, contracted with manufacturers from outside the state and continued to sell their products at low prices. Of its competitors as it was, as it negotiates no Ham in the words of Buffett; where he embodies his courage unshakeable, which makes the underdog winner, hits Buffett style Ms. Rose in the administration always goes.

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6. Know when to stop: When Buffett went to the racetrack and then bet on a race, he lost, and in order to compensate for his loss he bet on another race, and lost again, to return empty-handed, after which Buffett felt very tired of what Happened; he lost nearly a week's earnings. Buffett never repeated this mistake again. It is advised that you should know very well when you move away, or give up the loss, and do not let the anxiety fool you to try again.

7. Invest in yourself: Buffett says, "Invest in yourself as much as you can when you can, you're your biggest asset so far." "Anything you invest in yourself comes back to you 10 times more," he says. Unlike other assets and investments, your own assets that you yourself are "no one can book for, for example, or steal from you."

8. The difference between successful and truly successful people, that really successful people say no to almost everything. Buffett says that success requires intense focus. Many people have long to-do lists and work to be more productive. In fact, having a list of tasks that should not do not-do list is more important if they want to The person to do great things.

9. Never lose money: Warren Buffett's No. 1 advice, which he follows as much as he can "do not lose money" and rule number two is "Do not Forget Rule No. 1".

10. It is not necessary to do extraordinary things to get extraordinary results.

11. Explain everything about the deal or work before it starts: Buffett explains that your bargaining power or bargaining power is always greater before you start working, and that's when you have something to offer to the other party. Buffett learned this lesson harshly when he was a child. His grandfather, Ernest, hired him and another friend to remove the ice that covered his grandfather's grocery store after a snowstorm hit the place. Buffett and his friend kept shoveling ice for five hours straight, Until their hands were almost frozen, and then his grandfather gave them only 90 cents to share among themselves. At that time, Buffett felt a great shock, how did he do all this painstaking work in return for earning this small wage? Since then Buffett has been tightening all deals by explaining all the details before starting with everyone, including friends and relatives.

12.  Invest in companies and institutions that take note of small details: Warren Buffett invests in companies run by managers who look at the smallest costs, such as a company that calculates the number of toilet rolls, for example, and makes sure it is actually 500 sheets; to see whether they have been deceived.

13.  Reinvestment of profits: Warren Buffett learned this strategy early. In high school, he and his partner bought a pinball machine to put in a barber shop. And with the money they earned from them they bought many of these games, up to eight, were scattered in different shops. When they sold the project, he used his proceeds to buy stocks and start other small businesses. At the age of 26 he had collected $ 174,000, equivalent to $ 1.4 million today. It means that even if the amount is small, it can turn into a fortune.

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14. It  can take up to 20 years to build a reputation, and its demolition will not exceed 5 minutes. If you put it in your mind, you will probably do things differently. And gaining people's trust is an invaluable wealth.

15.  Learn how to spare: Buffett says, "I think the biggest mistake is not to learn the savings habits properly at an early date; savings usually have to be acquired." He explains that if a person has the ability to live at a lower level than he is now, he can make the first million dollars very easily.

16. It is better to spend time with people who are better than you. Selecting the partners with the best behaviors will reflect their good behavior on you.

17.   Diversification of investments is originally a protection against ignorance related to these investments, so it makes sense that this diversity is a bit for those who know what they are doing.

18. The price is what you pay, and the value is what you get, whether we're talking about stockings or stocks, so buy quality goods when prices fall.

19. The key to investing is not to assess the extent to which the industry or product affects society, or to what extent it will grow, but rather to determine the competitive advantage of any particular firm and, above all, to determine the durability of this competitive advantage.

20. It is far better to buy a "wonderful" company at a "good" price than to buy an "appropriate" company at a "great" price.

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21. Warren Buffett: "I'll tell you how to be rich, be afraid when others are greedy, and be greedy when others are afraid."

This means that the key to investing is to buy while prices are low and sell when they go up. When prices fall, everyone is reluctant to buy; fearing further declines, then you have to buy. When prices rise, everyone stops selling; to gain more; thinking of continuing to rise, then you have to sell.

22.   Successful investment requires time, discipline and patience. No matter how great the talent or effort, there are some things that take a long time. You can not produce a child in a month by getting nine pregnant women.

23.  Charles Munger, vice president of Berkshire Hathaway and a close associate of Buffett says the secret to Warren Buffett's success is that he is constantly learning. So the best advice you can take from Warren Buffett is to commit yourself to lifelong learning. 

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