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Friday, June 17, 2016

7 Best Investing Advices of Warren Buffet

warren buffet quote

Everyone listens when Warren Buffet offers an investing advice. Warren Buffet had never been shy to tell his strategies to come up with a $72 billion net worth and grow his company, Berkshire Hathaway, into valued at $212 billion.

Here's the 7 Best Investing Advices of Warren Buffet:

1. Cash is the worst investment that you can make over time.

Cash is a bad investment over time. We always keep enough cash around so I feel very comfortable and don't worry about sleeping at night. You always want to have enough so that nobody else can determine your future essentially.

2. Invest in a broad-based index fund that tracks the S&P 500.

If you're professional with a confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund, and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb.

3. Invest in yourself.

The best investment that you can make is to invest in yourself. Anything that can improve yourself to develop your own abilities will be helpful to achieve success.

4. If you’re determined to pick stocks, don’t buy into a business you don’t understand.

It is very significant that when you buy stocks, make sure that you understand the business. Make a comprehensive research to the fundamental analysis of the company before you put your money to invest.

5. Focus on the competition as well.

“Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” 

6. Invest for the long haul.

"If you are not willing to own stock for 10 years, don't even think that owning it for 10 minutes."

7. The hardest part about investing: trusting yourself.

Trusting yourself is the hardest part about investing if and only if you do not understand the company to invest. That's why you need to study the company so that you gain confidence to trust yourself the stock picks you choose. To be successful investor, you need to get away from fears and greed of the people around you and keep on trusting yourself.

Source: Yahoo! Finance

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