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.
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.