Time Money has published a report on the most prominent secrets of Warren Buffett and his advice, whether in the world of finance or life in general. take advantage of them.
Although there are many reasons for success in the “Buffett” story, he attributed the secret of his greatest success to his eagerness to learn throughout his life. Throughout his struggle, which is estimated at more than half a century, the billionaire did not stop for a moment to learn new things, one might benefit from the advice of He hears it here and there, but the path to success needs more than that, as he needs to strive hard to learn new things every day.
Warren Buffett's 10 Investing Secrets
1. The most important characteristics of the investor are “mood control” and not “intelligence.” He needs a “moderate temperament” that does not cause “extreme happiness” while being with people or cause him to turn against them.
2. Successful investment needs time, discipline and patience. Some elements of the investment process take time, no matter how big the talent and effort are.
3. A person does not need to jump over high barriers to reach his goal, and he must search around it for the shortest barrier suitable to his abilities to continue his way.
4. In the short term, the market is an arena for competition, but in the long run, it is an “evaluation machine.”
5. Opportunities do not come often, and when it rains gold one should make sure to fill a bucket and not a “thimble” (a short metal tube that a tailor puts on his finger).
6. Diversity is a safeguard against the repercussions of ignorance, but it doesn't make much difference to people who know what they're doing.
7. A share that the investor does not intend to hold for ten years should not be held, not even for ten minutes, and he should make a list of companies whose earnings are rising at a steady rate over the years because they will be the same companies whose market value is rising steadily.
8. The investment success criterion is not determined by evaluating the sector's impact on society or its growth rate, but rather depends on determining the competitive advantage of each company separately and assessing the extent of the continuity of this advantage.
9. Entrepreneurs become better investors, and investors become better entrepreneurs.
10. Buying an excellent company at a moderate price is much better than buying a medium company at a premium price.
Buffett also drew many visions and lessons from his long struggle, which spanned more than five decades, which provides a more comprehensive and understanding view of the reality of life and investment.
5 insights “Buffett” extracted from his struggle
Vision 1: “I will tell you how to be rich, close the door, step back when others advance and advance when others are afraid.” By this, Buffett means that one of the most important keys to investment success lies in buying the stock when its price is low and selling it when it is high.
Vision 2: “I tell college students, when you are my age, you will only be successful if you make the people you want to love love you.” Money is not the most important thing in life, and Buffett believes that achieving wealth is not limited to money only but extends to other elements such as fame behavior and gain the trust and respect of those around.
Vision 3: “The difference between “successful” and “actually successful” is that “really successful” say “no” to almost everything. Many high achievers such as “Steve Jobs”, “Bill Gates” and “Warren Buffett” attribute their superiority to focusing on a specific goal. Successful people have a long list of “goals” that they must achieve and work all the time to be more productive to achieve one goal after another. The greats don't have that list, which sets them up for great, unexpected goals.
Vision 4: “I find that more people fail because of debt. If you are really smart, you will be able to make a lot of money without getting in debt.” There are infinite ways to succeed but finite and known ways to fail, one must learn from the failures of others before their successes.
Vision 5: “What the investor needs is the ability to evaluate the performance of “specific sectors of business”. You do not have to be an expert in all companies or even many companies, you only need to evaluate companies in the vicinity of your competitive circle, and the size of this circle does not matter, the important thing It is knowing its limits. This saying simply means that the investor should focus on companies whose activity he understands and can evaluate their performance, and to stay away from institutions that do not understand their activities and cannot analyze their performance.
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