Five Things About Investment We Need to Learn From The God of Investing – Warren Buffett


If you think that your future is in the dark or your financial situation is not better as you believe it would be then you need to listen to the world’s fourth-richest man in the world.

Yes, I’m talking about the god of investing, “Mr. Warren Buffett.” Sometimes it is crucial for us to take advice from the people who have done something big and they mark their name in the sky.

We are explaining 10 things, which will help you to understand better about investing.

These are the keys to success from someone who’s no stranger. So, read carefully because it possibly can change your life.

1. Spend Wisely:

Financial Guide

One of the greatest investors of the financial market said that if you want to get rich, start spending wisely. You need to understand the difference between spending and investing. Few people said that what if I am buying another sofa for my house. The person could have said that I’m not spending, I’m investing in my house. But you know what the truth is, that guy is actually spending not investing. 

Warren Buffett once said, “If you buy the unnecessary things, you’ll end up selling important things.”

Pay close attention to your spending it will teach how you can save your money. The first thing you need to do before spending your money is, “Prepare a Budget.” Yes, make a budget of things that you may need in the next month. It could be anything, Grocery, furniture, First-Aid, vacation etc. You need to find out what actually do you need for the next month. Once you do this, you’ll save lots of money.

2. Care about your money, it will grow if you spend it wisely:

Financial Guide

You might be thinking that people care about how much you earn. Well, let me tell you the harsh truth about the society. Yes, people care about how much money you make during the month, how much your net worth is or even where you spend your money during the year but those people only cared about money because they’re jealous. 

You may be thinking that it is not true but suit yourself with this harshness. It is the truth. People only cared about how much they earn not you earn. They only want to know that if they’re making more than you or not. 

You need to understand that no one gives a damn shit about your money as much as you do. You’re the only person in this world who has a right to grow your money or to lose your money. It depends on you that what do you want to do with it. You can invest it in the market and make a lot of it or you can also do parties with your friends, forget about the future, drink lots of beer and go out with girls and spend all your money and then sit back and read about the people that how they make lots of money within a month or without going to office. That is your choice decide which person you want to become. 

 

3. Always be aware of the markets:

Financial Guide

It is a very small world, before the internet and social media this world looks so big and people never thought that they can even contact a person from Amsterdam to Beijing within few seconds. As the world getting smaller, people coming closer all around the world. Everyone knows who is Leonardo Dicaprio and Who is Shah Rukh Khan. Everything just becomes very small from some point of view, this leads to us two different points of views. 

It is good that the world becomes so small, now people can contact any person from anywhere in this world by just using, Facebook, Twitter, Skype or anyother social media but it also makes it worse for few people. Now people can easily come up with anything and to make it viral they only need to update it only on social media. For instance, If Microsoft wrote on their social media account that, “we are going to recruit 10000 employees in our new branch.” and what it someone stole their post and edit it and write on it, “We are going to fire 100000 employees from our main branch.” If this post got viral, Microsoft’s share could have lost his half of the market value and the share price will definitely go down.

The moral of the example is that never ever believe in the talking, If someone told you that, dude buy that stock, it’s hot, you will make thousands…” Never ever believe in the rumors. It will drag you in the hell. Do your homework, before investing in a company, learn what the company do and make yourself comfortable with the stock.

 

4. Having fear is good, it will keep you on a track but too much fear can kill you from inside:

Financial Guide

let me tell you a short story, Once there was a person who lives in the village and they had a water fall in the village. His mother always told him not to go near by the fall. She told him stories about how few child went near by it and jump in the water fall and lost their life. It was a lie, She only told him because she was afraid that what if he actually drown in the water, he will die.

That’s the actual story which we tell our mind and heart. You’re not afraid that you’re making yourself afraid because from the beginning you only heard stories about how people lost their money by just investing in stock market and stories that just doesn’t make any sense. 

Many people said, Stock market is like gambling but trust me it is NOT. Investing is an art and only a few of people understand this art and make thousands of dollar. You’ll not lose or gain in your stock until you sell it. It is simple as that. Overcome your fear and understand what exactly stock market wanted to teach you. 

 

5. Short-term only give you short income, long-term can make you wealthy:

Financial Guide

There are three kinds of investors, One who does Intraday trading, Second who sold your stock within a year and smart investor who look for opportunity, do their home work, track a perfect stock and invest in it for many years. When you plant a seed, it never gives you a fruit a very next day. It will take time. First

When you plant a seed, it never gives you a fruit a very next day. It will take time. First you need to give a water, you need to take good care of it, make sure no one pluck it, give water two times a day and on regular basis, and after few year, when it’ll grow, when the plant will convert into the tree you would not need to give it water or anything then it’ll tree’s turn to give you fruit, shadow, oxygen and many other important thing from in it.

That is exactly what stock needs. First, you need to identify the best stock for you, understand the situation, read about the company, pay attention to its activities, invest in it, track a good record and wait for the big opportunity. 

 

 

 

2 thoughts on “Five Things About Investment We Need to Learn From The God of Investing – Warren Buffett

  • September 3, 2017 at 12:53 pm
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    This was an excellent page for such a hard subject to talk about. I look forward to reading many more great posts like these. Thanks

    Reply

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