Warren buffet: Top Investment rules.

Warren buffet: Top Investment rules. 

Warren Buffet

Warren Buffet is known as the investment gurus, Businessman, and philanthropist and has a net worth of US$ 82 Billion as a July 28,2019. He bought his first stock at age 11 and sells candy, coke and other small stuff doors to door.

He is the CEO of Berkshire Hathaway. Donating billions of $ to the charity with his friend Bill Gates. 

Top Investment Rules of Warren Buffet

Rule No 1. Never Loss money 

It is not like that you will learn to invest without losing money because Warren Buffet personally lost $23 billion in the financial crisis in 2008 without making mistake and the power to solve the mistake without repeating it help you learn more and more.

People are gambling with there money without realizing because they don't know how to invest. The majority of people are just investing their money with crowds without knowing what is happing. 

Warren Buffet is trying to say don't be like them because the investment isn't risky when you know what you are doing and the investment is risky when you don't know what you are doing.

Rule No 2. Never forget Rule No 1

As an Investor, you have to know what you are doing and track the record of them. It is the biggest disadvantage if you don't know what you are doing and invests money with the crowd.

Then, you are the biggest fool.

Rule No 3. Study the Business Not the Stock Prices

Stock prices do not tell about the business but business tells about the stock prices. People invest their money by seeing what the prices are sometimes you don't have money to buy but in the first, you have studied the business. You have to know what is the value of the business.

Apple is the best example you can see apple stock increase and decrease whenever they lunch their product due to the high prices but the value of Apple is the same no matter what happens because they have a damn good product which is appreciated by all the people in this world.

Rule No 4. If the Business dose well, The stock eventually follows

Investment is not a quick money-making scheme. Investing in the stock is owning the pieces of business. So, Warren Buffet finds Businesses that can be beneficial for the long term. He studies the business how the business doing the past few years.

If He gets the reason to pay specific prices for a particular company then He buys the stock.

Rule No 5. Wait for the Right Pitch

You can see lots of stock in the market but you cannot invest every single of them. You have to see thousands of stocks and choose the one you understand and then, you invest in it.

It is like to swing the bat at the right time and hit a home run.

Rule No 6. Don't put your eggs in one basket.

You can't depend on investing all the money in one company. Warren buffet believes the rule of The intelligent investor where the author Benjamin told that invest 30 to 70 % of money you have in one company.

Warren Buffet believes that it is true.

Rule No 7. Invest in yourself

I can say that this is the most important rule for investment. Warren Buffet spends 4 to 5 hours reading a day because he believe that the more you learn the more you earn and that true.

The stock market is very difficult to understand and as an investor, you have to invest in knowledge which will help you in future investment.