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5 Warren Buffet's Advice About Stock Investing
Learning from Warren Buffet's story, his investment journey is also not always easy. Several times he had to be in an unstable economy. But even so, this did not make him give up and lose. He decided to stay afloat, looking for all possible opportunities until finally, his name was known by the whole world.
The following are Warren Buffet's advice regarding the investment world that is very attached to him.
5 Warren Buffet's Advice on Stock Investing
1. You're Investing, Not Speculating
One of the most important keys of Warren Buffet during his time in the world of stock investing is related to the principle that he will never want to invest in a company or business that he does not understand. This is probably being ignored by many stock investors today.
Especially if your investing purpose is for profits, ever taking into account many things, including the risk of significant losses.
Warren Buffet's vital principle is that his shares only flow to businesses that he understands. So indirectly, this also minimizes the possibility of potentially harmful manipulations in the future.
2. Buying Shares at the Right Time
This second point should be understood a lot and should not be a secret anymore. But believe it or not, this kind of concept is not necessarily applied by everyone who has started investing.
Warren Buffet applies the concept of "Sell things when lots of people want to buy. Vice versa. Buy goods when many people are selling."
Of course, to get the right moment like this requires a lot of relationships, information, and a lot of experience to be able to read and make good use of the moment.
3. Get used to reading a lot
As a prominent investor, Warren Buffet is known to spend more of his time reading books at home and in his office. It cannot deny that reading a lot of readers will give you the ability to think broadly and understand situations from many points of view.
In this field of investment which is also uncertain, the skills above are essential to have. Reading books is indeed very good for gaining insight rather than just filling spare time with activities that are less productive but drain a lot of energy.
4. Be patient and enjoy the process.
Almost everyone who starts to be interested in investing is interested in the percentage of profits they will get later. Some other people are too prejudiced by the investment. He is making sure that he is not ready for the risk of loss that lurks in front of his eyes.
Warren Buffet teaches us not to be too ambitious when making investments. Because this attitude will make our minds rush and tend to be less mature. As a result, it allows us to make decisions based on a moment's emotions without even thinking about it. In the investment world, this certainly should not be the case.
5. Time is your companion
An investor arguably must always be sensitive to the time and the moment that is happening. Before taking action, an investor has an estimate of the time or estimate associated with it. To be able to predict, although not in detail, regarding the investment prospects that will run. Is it safe and effective enough or even has the potential to lose money?
Warren Buffet said those are the five things regarding the investment sector, which recently seems to be in great demand. It doesn't matter if you've never jumped into the investment world but are very curious and want to try getting started.
How about your investment journey so far? Was Warren Buffet also one of the figures who inspired you to invest?