We summarize those boards of investment over the years has left Warren Buffett. They are nothing new and even many of us already do some even without realizing it, but never hurt to know how the mind thinks the greatest investor of our era.
1. Do not consider yourself a guru.
Warren Buffett warns that there are two types of people who lose money by investing in the stock market. He who knows nothing and he knows everything. Do not try to predict the market or policy changes or interest rates. Focus on the present.
Note: I put as number one spot this “advice” because it is probably the only one with which I disagree, because we must keep in mind that Buffett is an investor only long term and can afford to keep large amounts of money for decades leveraged company. We must try to predict how the market and we must be alert to any changes that arise and that may harm the economy.
2. Invest only in businesses you understand.
This is the best advice I can give both an investor and an entrepreneur. If you do not understand the type of business, do not go. If you can not play a game, not play. If you can not swim … do not launch into a pool. It is said that before making your first investment in children, Buffett discussed for months everything related to the company you want to invest before you take the plunge.
3. Patience.
It is the greatest virtue that should be an investor, both when entering, as in maintaining, as when you leave. Buffett likes to buy low, so sometimes waiting weeks or months that the company goes through one of those moments where their value drops so you can get a good price.
Once you are a shareholder of the company, nerves and fear should not gamble tricks if the action does not evolve as expected. Be patient and expect the return value to your site. Remember the three strategies you can follow when a stock starts to go down in value.
4. Always look at long term.
Personally I do not identify with this because when I see benefits, pick them up. For Buffett, the investment in the stock market is very different. He did not speculate the value of the shares. Said himself: “When I buy a stock, buy it forever.”
5. Diversify the bare minimum.
That diversifying too much is a clear sign that he knows what he is doing. If you have invested in six companies that expect to be profitable, what to look for seventh instead of injecting more capital into one of the other six? You can see the investment portfolio of Warren Buffett here.
6. When investing, do not buy stocks, purchase business.
There are investors who are driven by graphics, other buy recommendations by analysts of companies that are supposedly going to be leading and others simply out of fashion. Warren Buffett invests in companies with a business plan and detailed marketing strategy and clear. Invest in companies that were before the “fashion” and that will remain when the bubbles burst.
Hence its preferred stock is Coca-Cola, and is likely within 150 years, Coca-Cola remains the biggest selling soft drink, but might come in pill form rather than liquid, but Buffett is confident that the company will continue to adapt to market no matter what.
7. Knowing how to say NO.
When you begin to invest in stock you pass a list of potential purchasers of shares and investment funds, so that day in and day call-in “business brokers” than as an insurance salesman telephone or adorn a product you to invest in it. You know how to say no and not let you in without a thorough study before everything you need.
As a personal tip, I will say that everything is good, you do not need to sell it, but you look directly. Another clear example of how to say no is the friendship between Bill Gates and Buffett. Gates has billions invested in Buffett’s company, and that have not invested a single dollar in Microsoft (A Buffett does not like technology companies).
8. Be prepared to take risks.
Warren Buffett to invest in the stock market does not advise a person if the shares fell 50%, this could cause “havoc” economic and emotional person. In the bag can be won and can lose, so as a player on a football team, be prepared for both outcomes, but better not play.
Remember that you should invest in stock market invest money that you will not need in the coming years.
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