Top 10 Investment Tips From Warren Buffett

WARREN BUFFETT

Warren Buffett is one of the world’s biggest investors and business mogul. Despite coming from a privileged background, Warren got out of his comfort zone, to make something for himself.

In order to empower other people, he shares some of the best investment tips included in this article.

1.     Be true to yourself

One of the best investment tips is to be true to yourself. This is your ability to acknowledge when investment will be good and when it will be bad. When business is good, enjoy the returns and when it is not so good, prepare yourself for it.

2.     Know the basics

There are four major important factors necessary in making a good investment. They include understanding the business, trust worthy management, long term economics and the price tag.

3.     Put your money in the right places

In order to have good returns, you have to invest in the right businesses. Warren’s biggest investments include American Express, Wells Fargo, Coca Cola and Gamble. With your money in the right places, you don’t have to worry about losing your money.

4.     Be in the best hands

Individuals are in charge of businesses; however, some of these individuals do not have the best CV’s. So, you need to employ the best hands for your business and not the best CV’s. Look out for people with the drive and passion to push your business forward.

5.     Know when to sell

While it is a good thing to have investments, you need to know that there comes a time when you have to sell an investment. That way, you will make much money. However, you need to get the timing right, know when the market is suitable to sell an investment.

6.     Encourage workers

Your workers have to be at their best in order to indentify good strategies to increase your investment returns. You should give your managers some bonuses for food financial moves.

7.     Invest at the right time

The Euro appreciated from 95 to $1.37 between 2002 and 2007 and the US trade deficit with Germany expanded from $36bn to $45bn, the reverse of what should have happened. As long as these imbalances are constant, foreigners will continue to buy up America on the cheap.

8.     Invest in Lending

Lending is a good way of investment as it yields good returns. Buffett acknowledges the importance of this witty one-liner and states thus “It is interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine.”

9.     Identify the problem

You need to have an eye for knowing when your investment is going down. When the storm blows, a huge amount of financial problems will be exposed. You only learn who has been swimming naked when the tide goes out.

10.Be optimistic

When you make investments, you have to be optimistic that your investment will yield good results. This is what keeps you going even when the investment company is experiencing a crisis.

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