1. Spend wisely.
2. No one cares about your money as much as you do. Buffett makes all his own investment decisions for his best interests – not the commission-based interest of financial advisers or stock brokers
3. Do your homework – scan thousands of stocks. Never invest in a business you don’t understand. Buffett spends 18 hours a day working on investment capital. According to him, investors should think of themselves as partial owners.
4. Overcome your fear of risk. Americans are afraid that investing in stocks will bring losses. However, Buffett says stocks outperform bonds, banks and even gold, and are safer, too.
5. Focus on the long-term. Putting off saving/investing means you’ll need to save more in less time for the same outcome.
6. Invest in quality business. Doing your homework will help you determine the worth of companies.
7. Hunt for exceptional bargains for solid companies. Buffett recommends buying stockduring a crash when even great companies have extremely low prices.
8. Make decisions to invest based on how well money is being used by management.Buffett feels penny-pinching indicates a profitable mindset
9. Be patient. When conditions align, buy an appropriate amount of shares; Buffett recommends holding stocks in 10-15 companies.
10. Sell losing stocks when the market is up; and buy winning stock during a crash.Selling a dud stock at its worst adds to your loss, and purchasing a great stock at peak price cuts your gains.
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