Warren Buffet is commonly known as the “Oracle of Omaha” is incredibly one of the most successful investors of all time. He first bought stock when he was just 11 years old and first filed taxes at the age of 13. His Net Worth is $74.90 Billion as on March 2017 and his Berkshire Hathaway owns more than 60 companies, making him one of the richest men in the world. Investors and traders across the globe follow Warren Buffet’s Stock Market Mantra to make money.
He tried to earn money while selling gums, soda, and magazines door to door in a small town Omaha where he was born. Warren Buffet was rejected from Harvard Business School and then he got a master’s in economics from Columbia instead.
Warren Buffet becomes a millionaire by 1962 and by 1979, his net worth had crossed $600 million. He became the world’s richest man in 2008 and has been in the top-10 list of wealthiest people on earth for more than a decade now.
Warren Buffet’s stock market mantra to make money online and other life decisions can be used to become successful. His mantras are powerful enough to make you rich if applied to one’s portfolio, irrespective of market volatility.
Here are the 10 Top Warren Buffet’s Stock Market Mantra To Make Money Online
“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” – Warren Buffet’s Stock Market Mantra
Warren Buffet’s stock market mantra is to invest in a stock which will give you returns for 50 years or more. You can see growth in sectors like FMCG, Banking etc in the long run as the demand for this products are always there. On the other hand, you must avoid stocks where the demands will likely to go down after a certain period of time.
Don’t gamble stocks and be informed while researching a little bit before investing. Warren Buffet doesn’t go into an investment prepared to lose, and neither should you. You must check out the company’s history before investment as every stock has some degree of risk associated with it.
Warren Buffet rarely changes his long-term investing strategy irrespective of market volatility. The stock market will move up and down due to fundamental or some other reason but you must focus on your goal. Instead, you must try to protect principal amount from losses should be a higher priority for you than making money.
So, always keep in mind the following quote from Warren Buffet
“Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.” – Warren Buffet
“Price is what you pay. Value is what you get.” – Warren Buffet
Warren Buffett has put a complex concept and ideas into simple and easily understood terms. The concept of “Price is what you pay. Value is what you get.” represents value for money. So, when you purchase stocks you receive the full benefits of the stocks.
You will get the value for money if the stock you purchase is capable of generating revenue on your behalf. Its value to you will be greatly impacted by the price you pay to obtain it. Unfortunately, few investors possess the presence of mind to focus on this critical element.
Instead, investor attention is more commonly and intensely placed on stock price and its movement. You will be surprised to see how much value it add to your portfolio for a long run. So keep buying value stocks and add more value to your portfolio of stocks.
“Never invest in a business you cannot understand.” – Warren Buffet
Warren Buffet famous quote “Never invest in a business you cannot understand” reveals that you don’t just invest because it looks good. Analyze the stock before you actually invest. Don’t just follow the trends or the crowd. Many investors attempt to ‘time’ the market movements.
Use of borrowed money can destroy the returns of your portfolio. You start buying stocks without understanding it when everyone is selling and to sell when everyone is buying. If you are a value investor, you would look for opportunities in stocks. It’s the discipline and investment philosophy that makes all the difference in your portfolio and add more value to it.
“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.”
People tend to buy stocks if they get it at a cheaper rate without knowing and researching it and eventually lose money. Never buy something simply because it’s cheap. The whole point of investing is to make money out of it, and you should do your homework before investing.
If you are getting a valuable stock but the price is fair then don’t worry. If the stock you are purchasing is valuable then you will get return out of it irrespective of the price movement. On the other hand, you must avoid stocks which are invaluable and not fundamentally not so strong. After all price and value are not the same things.
“Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
One of the Warren Buffet’s stock market mantra is that “Wall Street makes its money on activity. You make your money on inactivity.” Day trading leads to brokerage and taxes that erode your returns. An intelligent investor always figures out the best and does not trade in and out of them.
Trading based on market news and market sentiment and lots of unsolicited information through TV channels, websites and radio may harm your portfolio. Once you have done your homework, just invest in good stocks and sit tight. Have patience and let the stock grow with the intent to own and profit over a longer period of time.
Remember this, Warren Buffett started with $100 and turned it into $74.90 billion.
Finally, we can say that Warren Buffet’s Stock Market Mantra is to investing in valuable stocks the right way. You’ll need to do your research and analyze stocks before investing and hold for a longer period.
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Published on: Jan 20, 2018