Warren Buffet ,CEO of Berkshire Hathway explain investing in 3 simple lines which is very beneficial and ubiquitous for investors.He may be lionize as an ace investor but I say he a man of great intuition with a sense to make money smartly.Many investors are performing on the advice of this great investor and are very successful,they say it pays to listen Warren Buffet.
Some investing tips by Warren Buffet are ,
- Buy stocks in the same way you'd buy an entire business
People think that Warren Buffet is very intelligent or has an extraordinary quality for making a sound decision.In investing intelligent don't measures success but your intuition and interpretation make your decisions which may be different from others.Warren Buffet says while making an investment you should evaluate the stock or business as you are purchasing or acquisition of business.In his letter written in March 1978,he wrote his characteristics of investing ,first is to understand business,second to evaluate long-term prospects of business and third management of the business.
2.Look for an enduring "moat"
The word 'moat' comes from Economic dictionary of Warren Buffet which refers 'moat' to a company's ability to maintain a competitive advantage over its rivals to maintain healthy competition and protection against rivals.He cautioned that the history is filled with 'Roman candles,' and companies which have moats are just an illusion they were soon crossed.
- Avoid buying and selling too frequently
Problem of buying and selling quickly is ubiquitous which is frequently stated in notes of Warren Buffet,"Eschew activity,which means buying and selling too frequently. People who have lack of patience please stay away from investing because for higher return you have to wait for a successful investment else it will be a wagering one ,don't interpret investing in stocks as speculation.Buffet told there are times to sell stock but not frequently but too much activity will cost you over long run .Investing in S&P index funds for 10 year will probably a successful investment.Look for A grade or blue chip stocks for long -run.
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