Warren Buffett's Investment Tips: Want to earn maximum returns? Follow these 3 ways of Oracle of Omaha
The legendary investor has accumulated a fortune of more than $87 billion over his career. One of the famous lines by Buffett reads, ''Be fearful when others are greedy and greedy when others are fearful.” It explains the importance of emotions while trading investments.
Warren Buffett Investment Tips: Known as 'Oracle of Omaha' and one of the richest investors of the world, Warren Buffett is treated like a God of investments worldwide. The CEO & Chairman of Berkshire Hathaway is 88 years old but bought his first stock at the age of 11. He always has a lot of tips to enlighten people or investors throughout the globe. The legendary investor has accumulated a fortune of more than $87 billion over his career. One of the famous lines by Buffett reads, ''Be fearful when others are greedy and greedy when others are fearful.” It explains the importance of emotions while trading investments. An investor should never invest with emotions at the front. Getting maximum returns do not depend on luck, it is a reality that can be achieved through patience, the right choice, and study.
Here are the 3 investment tips of Warren Buffett that can give you the maximum returns:-
Tip 1: Don't look at the market daily, look at its business:
Buffett says that the market will go up and down on a daily basis as it is volatile in nature. The investor should never look at the markets and decide which stocks to pick. Picking the right stock requires a bit of study and research, hence look at the business with precise and decide.
He believes that an investor should always invest in a business which he likes and understands. Don't go for companies that others on the street have bought, Buffett said in one of his interviews.
Tip 2: The long term game will always win:
Long term investments are always more return worthy and lucrative as compared to unplanned, short term investments. Patience is one of the most required skill to become an investor on the investment street, believes Buffett.
Giving an example in the annual letter of Berkshire Hathaway, Buffett wrote, “If my $114.75 had been invested in a no-fee S&P 500 index fund, and all dividends had been reinvested, my stake would have grown to be worth (pre-taxes) $606,811 on January 31, 2019. That is a gain of 5,288 for 1.”
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Tip 3: Buy shares at attractive prices
“We are going to be buyers of things over time. And if you’re going to be buyers of groceries over time, you like grocery prices to go down. If you’re going to be buying cars over time, you like car prices to go down. We buy pieces of businesses: stocks. And we’re going to be much better off if we can buy those things at an attractive price than if we can’t.”
An investor should look to buy shares at undervalued prices, as they have more chances to pay more in the long term.
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