Warren Buffett’s investment advice (21 golden tips)
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Warren Buffett’s investment advice can be said to be golden investment wisdom and solid wealth-building strategies. He is the seasoned expert, who was able to build huge wealth, without a specific patent, technical progress, or legacy that helped him in that, or legacy on which he relied, or a job with a large salary, but he built his empire with investment tools available to all, with prudence, wisdom, and investment. Intelligently, hard working.
The advice of Warren Buffett, the greatest investor of the era, that you will soon learn about, you may not have heard of before, other than the famous one about him, such as his famous saying in spending, “Do not buy what you do not need, there will come a day when you will be forced to sell what you need.” Or what he said about saving: “Do not save what is left after spending, but rather spend what is left after saving.” Or his wonderful risk-taking wisdom, “Never test the depth of the river with both feet.”
Rather, in this article, we will discuss more accurate aspects that the personality of a successful investor should have.
Warren Buffett’s investment advice (21 tips)
1- Warren Buffett says: “A long time ago, Ben Graham (author of The Intelligent Investor) taught me that price is what you pay, value is what you get, whether we are talking about socks or stocks, so buy quality goods when they are low.
2- 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’t produce a baby in a month by getting nine women pregnant.
3- Opportunities come rarely, so when it rains gold, put out a bucket, not a thimble. (The thimble is the funnel that covers the tip of a tailor’s finger to prevent it from being pricked by needles.) The point is to take advantage of opportunities when they come to make the best possible use.
4- Diversification of investments is originally a protection against ignorance related to these investments, so it is logical that this diversification should be less for those who know what they are doing.
5- The key to investing is not to evaluate the impact 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, to determine the strength of this competitive advantage.
6- One of Warren Buffett’s advice also: “It can take 20 years to build a reputation, and destroying it will not exceed 5 minutes only. If you keep this in your mind; You will inevitably do things differently. Gaining people’s trust is an invaluable wealth.”
7- It is better to spend time with people who are better than you, as choosing partners who have better behaviors will reflect their good behaviors on you.
8- Warren Buffett says, “I will tell you how to be rich. Be fearful when others are greedy, and be greedy when others are afraid.” This is one of Warren Buffett’s strong tips, and he means: The key to investing is to buy when prices are low and sell when they are high. When prices are low, everyone is reluctant to buy. For fear of further decline, that’s when you should buy. When prices rise, everyone stops selling; to achieve more gains; Thinking that they will continue to rise, then you should sell.
9- It is much better to buy a “great” company at a “fair” price than to buy a “fair” company at a “great” price.
10- The difference between successful and really successful people is that really successful people say no to almost everything. Buffett means by this that success requires intense concentration, many people have long to-do lists and work to be more productive, when in fact having a not-to-do list is more important, if he wants to. The person that does great things.
11- Learn more from people’s failures than their successes: Buffett believes that people’s failures have more lessons than their successes, so these lessons should be well understood. She is the greatest teacher.
12- Dividend reinvestment: Warren Buffett learned this strategy early. In high school, he and a friend bought a pinball machine. To put her in a barbershop. And with the money they earned, they bought many of these games, until they reached eight, which were scattered in different shops. When they sold the venture, he used the proceeds to buy shares and start other small businesses. At the age of 26, he had collected $174,000, which is equivalent to $1.4 million today. The point is that even if the amount is small, it can turn into great wealth.
13- Clarify everything related to the deal or work before it begins: Buffett explains that your negotiating power or the amount of influence you have to bargain is always greater before you start work, and this is when you have something to offer the other party. Buffett learned this lesson hard when he was a kid. Where his grandfather “Ernest” hired him and another friend of his in order to remove the snow that was covering his grandfather’s grocery store, after a snowstorm hit the place, and Buffett and his friend kept shoveling snow for five hours straight, until their hands almost froze, after that his grandfather gave them 90 cents to share among themselves. Then Buffett felt a great shock, how he did all this hard work in exchange for earning this wage
meager? From that moment on, Buffett was sealing 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 run by managers who scrutinize the smallest costs, such as the company that calculates the number of toilet rolls, for example, and makes sure that it is really 500 sheets; To find out if she was scammed or not.
15- Limit Borrowing: Living on credit cards and loans will not make you rich. Warren Buffett has never borrowed a large amount. He receives many heartbreaking letters from people who thought borrowing was manageable, but have become deeply in debt.
16- Learn how to save: Buffett says, “I think the greatest mistake is not learning the correct saving habits early on; Saving is a habit that should be acquired.”
17- Be persistent: With perseverance and creativity you can win against a more established competitor. Buffett acquired the “Nebraska Furniture Mart” company in 1983, for his love and admiration for the way its founder, Rose Blumkin, runs her business, the Russian immigrant who was able to build this company in the beginning with a loan from her brother of $ 500, and with the money she saved from selling used clothes; To become the largest furniture store in North America, as its strategy was based on selling products at much lower prices than competitors, so that its major competitors agreed with manufacturers to prevent supply to it, so it contracted with manufacturers from outside the state, and continued to sell its products at less than its competitors as it was She is also a ruthless negotiator, as Buffett puts it. It embodies his unwavering courage, which makes it The underdog wins, and Buffett always hits Mrs. Rose’s management style by example.
18- Know very well when to stop: When Buffett was a teenager, he went to the racetrack, and then he bet on a race, but lost, and in order to compensate for his loss, he bet on another race, and lost again, only to return empty-handed, after which Buffett felt very tired from what It happened; As he lost nearly an entire week’s earnings. Buffett never made that mistake again. Also, this is one of Warren Buffett’s most important investment tips, “You should know very well when to walk away, or let go of a loss, and not allow anxiety to trick you into trying again.”
19- Invest in yourself: Buffett says, “Invest in yourself as much as you can when you can. You are your biggest asset by far.” He also says, “Anything you invest in yourself will return to you tenfold.” And unlike other assets and investments, your own assets that are yourself “no one can withhold on them, for example, for taxes, or steal them from you.”
20- Learn about money… Another piece of advice from Warren Buffett. Part of investing in yourself should be learning more about money management. As an investor, Warren Buffett maintains that a big part of his job is to limit exposure and limit risk, and that risk always comes from people who don’t know what they’re doing.
21- Charles Munger, vice president of Berkshire Hathaway, who is very close to Buffett, says that the secret of Warren Buffett’s success is that he is constantly learning. So one of Warren Buffett’s best tips to stick to is to commit yourself to lifelong learning.
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