Most people try to invest and earn money, but they often suffer losses, as do the same mistakes again and again. Wannabe investors should try to study and adopt the mind set of these rich people like Bill Gates, Mark Zuckerberg, Michael Dell and Warren Buffett. Focus on Warren Buffet, who was recognized as the best investor in the world. Here are some of the investment advice, which he holds:
1. Developer Investment thinking
Not all people are focused on the business, but we can improve your business mind by reading books related to business. Warren Buffett has invested a lot of time in the study of books related to business.
2. Exercising patience in their investment
Every time Buffett buys stocks he buys the company. This means that he does not sell the shares for each market rise. He believes in the companies in which it invests money in the long run, and hold on to the shares until he no longer believes in and does not see the value in these companies. One of the famous quotes Baffeta showing his penchant for distant investment – is "No matter how amazing abilities and initiatives, some things just require a significant investment, you can not create a baby in one month, due to the pregnancy of nine women.".
Sometimes the amount that we spend on it, and the price that we receive from the purchase is not connected. Buffett believes that investors should understand that the markets move supply and demand and that the purchase of the company with strong growth in market deployment – is a great opportunity to get the value. Buy a good stock at a great price.
4. Check your emotions when investing
Human emotions influence the market more than any monetary model. Emotions can make people rely on the fact that never happened or occurred rarely. Buffett recommended to control their emotions far more important than your IQ. According to him, "the achievement of investments not related to IQ. Is required to control the desire to cause harm to other people when investing."
5. Invest in what you know and captured
Buffett proves that you "never invest in a business that is not doing." Do not put your money in a company whose business is you do not understand.
If you do not have enough information about the company, it is much more difficult to understand how the company works in the long term, and anticipate that the company will be in a few years.
6. Live below your means for
Despite the net amount of $ 87 billion dollars, Buffett lives in a shockingly unpretentious house. He bought his current home in Omaha, Nebraska, $ 31 500 in 1958, and now he calls it the third best investment he ever made. Rather than spend the money to expand the life, Buffett lived prudently and brings benefits.
7. Save first, and then take a rest
People tend to first pay the bills, and spend the rest retain the last one. According Baffeta, this is the wrong approach. Buffet prescribes that you must put a set of money each month as savings, first pay the bills, and then spend all that is left after paying the bills.
8. Remember your roots
When he was in high school, Buffett found a job, a paper document, delivering The Washington Post. He expanded this early action in deep-rooted association with the daily newspaper. Years later, his company, Berkshire Hathaway, has become The Washington Posts & # 39; largest investor. Remember where you got your values, and you can open unique opportunities for large investments.