Warren Buffett is still an inspiration for most people who harbour the hope to make it big in the financial market. Whether you are stock market investor or a forex market follower, it is hard not to be not inspired by the great investment guru’s words and fashion your trade in a way that he advises.
The story of a 17-year old newspaper delivery boy who worked his way through the system to become one of the century’s best known investors and financial market players and a magnanimous philanthropist is both inspirational and motivating.
So how exactly does this avid bridge player makes it work and how could you gain from his experience?
Invest First & Then Spend
One of Buffet’s earliest mantra is save first and spend the remaining instead of saving what is left after your spending. In this way you can invest a target amount every month and at the same time cut down your expenses appropriately to reach the target saving amount.
Don’t Have To Be An Expert
Buffett says, “You don’t need to be an expert on 10 percent of them even. You just have to have some conviction that either a given company, or a group of companies … are likely to make more money five or 10 or 20 years from now than they’re earning now. And that is not a difficult decision to come to.” All you need he feels is a conviction that there is a reasonable prospect of your money expanding I the given company.
Warren Buffett is known for his calm, patience and long-term focus. According to Buffet any major political event is accompanied by devaluation of money. He stresses the need to bet on sectors that have 100% prospects of seeing expansion in valuation.
Don’t Panic During Sell-off
What happens when your investments slump and nosedive southward? The Oracle of Omaha says, “When I got up this morning I actually looked at a stock on the computer, on the trades in London, that we’re buying and it’s down and I felt good. … We were buying it on Friday and it’s cheaper this morning and that’s good news.” The idea is commit for the long term and let not intermediate disturbances hurt your profit prospects.
Finally he feels one sure way of helping your money expand is to avoid herd movement and invest your hard earned money in sectors you understand and are convinced about.