Warren Buffett, one of the world’s richest and billionaire investor, has once again surprised everyone with his investment. Warren Buffett has made a big investment in his own company through buybacks. Since then, there has been a constant discussion about his investment mantras. Warren Buffett’s tips always come in handy for investors. Even when the corona virus came, Buffett had told investors a means of earning.
1# Invest in the right direction
According to Buffett, right direction and strategy is needed to increase earnings. Often people curse the rich, but this is not the solution. Stop cursing the rich and invest in the right direction. The only way to increase income is to invest in the right place and earn profits. However, Buffett believes that some part of his earnings must be given as tax.
2# Value investing – buy only at the right valuation
Value investing is a method of selecting stocks. This means that you choose stocks of companies that have strong fundamentals in terms of earnings, dividend, book value and cashflow, but those that are undervalued or say whose prices are likely to rise.
3# Quality matters is very important
Quality business has high potential for growth and compound cash flow. At the same time, low-quality businesses usually drown. In such a situation, even the market managers cannot save you. Always keep such capable managers with you, whose interests match yours.
4# Don’t diversify
Make an investment that is for life, which will always give you profit. Always keep an eye out for opportunities that can be found anywhere in the world. Opportunities can also be in an unexpected industry.
5# Be patient
Consistency and patience are essential. Most investors are their own enemies. The ability to be patient or patient gives an advantage.
6# Ups and downs give opportunities
Looking at the company, spending more on investment or paying more than expected, can be called risk. Prices fluctuate more than value, but price volatility can provide opportunities.
7# Don’t invest if you don’t have the opportunity
Such an event can happen at any time, which is not expected. One should always be ready for this. You can make some investment mistakes and still be successful. If you are not getting the right opportunity then it makes sense to keep cash.
8# Return is more important than investment
It does not matter where you are investing in Public Company, Private Company, Debt, Preferred Shares or Equity. More than the method of investment, the return from it is more important.
9# Clarity is essential
It is important to recognize your mistakes, move forward with perseverance and learn from mistakes. As good writing can improve your thinking. The same happens with shareholders as well.
10# Do what you love
Invest as like-minded shareholders to eliminate short-term performance pressure. Do the work you love and you won’t feel like you’ve worked a single day in your entire life.