Warren Buffett | Berkshire Hathaway | The Secrets of Warren Buffett
Mandatory Credit: Photo by Nati Harnik/AP/REX/Shutterstock (6258712b) Warren Buffett Billionaire investor Warren Buffett speaks in Omaha, Neb., at an event to raise money for the Girls Inc., charity organization. Buffett, Chairman and CEO of Berkshire Hathaway, said his company bought about $10.7 billion of IBM stock this year, giving him a stake of more than 5 percent stake in the technology company Berkshire Investments, Omaha, USA

According to Forbes Magazine, American investor Warren Buffett is the fourth richest man in the world, only after Jeff Bezos, Bill Gates, and Bernard Arnault. He has a net worth of $71.5B, but he differs from many of the billionaires. You might wonder why is it so?

Well, the answer is his skills.

He has the skills to make people believe things about investments that people unfamiliar with them start to think are effortless to invest and earn a benefit.

 

Here are a few of his advice that he gave to young investors to succeed in business:

Play the long game

If an investor wants to earn the big bucks, they don’t have to buy stocks with the sole intention to sell them in the future. If you’re going to make a fortune – play the long game. Only an urgent need for money is an excellent reason to sell a company, not the strategic calculation.

Learn something new and stay humble

Buffett is 88, and he still reads books and newspapers every day. He also recommends everybody to remain humble.

Invest only your fund

Buffett emphasizes that it is vital to use your own money when talking about investments. He also explains why the use of loans is dangerous and sometimes even harmful. An investor should always take into account the likelihood of share price busts. Thus, if someone has invested not only their funds, it can become a problem. The constant stress leads to poorly founded decisions.

Build relations and be kind to people

Even if this advice seems to be too “simple”, one of the richest men worldwide believes it helps to succeed. There is no way to replace relations with people with business knowledge.

Warren Buffett, chairman and CEO of Berkshire Hathaway tosses a newspaper during a newspaper tossing competition in Omaha, Neb., Saturday, May 5, 2012. Berkshire Hathaway is holding it's annual shareholders meeting this weekend. (AP Photo/Nati Harnik)
Warren Buffett, chairman, and CEO of Berkshire Hathaway tosses a newspaper during a newspaper tossing competition in Omaha, Neb., Saturday, May 5, 2012. Berkshire Hathaway is holding it’s annual shareholders meeting this weekend. (AP Photo/Nati Harnik)
Look to the future, not to the past

In 1951, Warren wrote that “The investor of today does not profit from yesterday’s growth“. Almost 70 years later, the statement is still relevant.

The secret is to know when to stop

Warren Buffett learned this lesson when he was a teen. Since he used to go to the racetrack, he bet on races. Once lost, but he continued betting. He lost once again and wasted his week’s earnings.

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