TEACHINGS OF WARREN BUFFETT THAT WILL MAKE YOU RICH.

TEACHINGS OF WARREN BUFFETT THAT WILL MAKE YOU RICH.

Friends it's a sad thing that our educational institutions don't impart any practical education to our children, when it comes to matters of money and finance .

That's the reason people are so poorly informed when it comes to finance ,because our foundation was only not concrete.

Hence don't be surprised if you find people having half a dozen endowment policies , which would be maturing after 35 years and believing it was a very smart INVESTMENTS  🤣🤣, just because a policy agent recommended them these plans.

So in order to vanquish our ignorance, we need teachers who could show us the right direction. And when we are talking about investing, I couldn't find a better teacher than MR BUFFET , THE ORACLE OF OMAHA , who could teach us the nitty gritty of investing.

Let's look in to some of his famous lessons and what he meant .

1. DO NOT DEPEND ON A SINGLE INCOME, INVEST AND CREATE A SECOND/ THIRD SOURCE OF INCOME.

Friends the pace with which inflation is shooting up , needless to say that even to manage bare survival your single income is not going to be enough. And if someone wants to save and invest then things becomes more difficult.

Hence you should earn more when you are young, and try to generate income from investing in different ASSETS classes.

Mr BUFFET had bought his first share when he was 11. So all the youngsters out there , the sooner you start, the sooner you would be well to do.

2. IF YOU BUY THINGS THAT YOU DO NOT NEED, YOU MAY SOON HAVE TO SELL THINGS YOU NEED.

Come on finmaaster is MR WB asking us to lead a ultra frugal life ? What's the use of earning if we can't spend on the latest flagship phone ?

There is no reason why you can't buy your latest gizmos , the only thing MR WB wants you to do is while spending be alert about what utility will that product give you and never loose sight of your financial goals.

Never buy things just to show off.

3. DO NOT SAVE WHAT  IS LEFT AFTER SPENDING, INSTEAD SPEND AFTER YOU SAVE/INVEST.

But isn't our generation X doing the opposite ?

Friends MR WB wants us to inculcate the habit of PAYING YOURSELF FIRST.

But THANKS to the no interest emi schemes, cashback offers of your credit card companies, big billion days etc we often postpone paying ourselves first.

Hence we think let's pick up the latest iPhone today and will start the sip once the emis are done with.

So friends save / invest first and then spend wisely.

4. NEVER TEST THE DEPTH OF THE RIVER WITH BOTH YOUR FEET.

Here MR WB wants us to understand that , if you are new to investing then start with small amounts instead of taking huge risks ,whether you are dealing in equities or debts.

Give yourself time to understand how things work out , take charge of your investments with time. Never take that risk which you cannot afford.

I have seen people who are totally ignorant about stockmarkets, investing huge money in random companies on advice of their agent , relative, friends ,And soon making big losses, at this juncture they end up cursing markets and vow not to return back.

So start small , be steady and never be in a hurry with your investments.

5. DO NOT PUT ALL EGGS IN ONE BASKET.

Friends no matter who you are and what you do, you should make a portfolio.

A portfolio which will have a good balance of equities, debt , gold , real estate in it .

Diversification is the essence of investing , never let your investments be concentrated in one particular asset class.

6. IT'S NOT ABOUT TIMING THE MARKETS , IT'S ALL ABOUT HOW MUCH TIME YOU SPEND IN THE MARKETS.

IT'S sometimes hilarious to watch people shouting targets of stocks on television, some people cross all the limits and predict the future of nifty and sensex.

But let me tell you friends ,there is no one in the world, who could predict the markets accurately.

So never try to time markets, when it comes to investments instead be invested in the markets for long term.

When I say long term it means your investments should be linked to goals . Like children's education, RETIREMENT etc.

7. NEVER INVEST IN THOSE BUSINESSES WHICH YOU DON'T UNDERSTAND.

Friends this is very important lesson that MR WB wants us to learn.

You should avoid investments in those companies whose business model you do not understand.

So these were some of TEACHINGS OF MR WARREN BUFFET, very simple to understand but sadly very few of us puts these into practice.







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October 11, 2018 at 8:22 PM × This comment has been removed by a blog administrator.
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Gupta Satyam
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