Buffett is the largest in the world and one of the most famous investors, whose fortune in March 2018 is estimated at $ 100.1 billion.
Buffett does not hide how he succeeded, and below you will see some tips that will help you succeed.
When money comes into your hands, there is a temptation to spend profits. But do not do this. Instead, it’s better to spend your money on new investments.
Buffett learned this at the very beginning of his journey and did not regret it. The fact is that the more money you invest, the higher your potential income.
That is, you can direct the profit from one business to the development of another or to the purchase of other shares.
Thus, your portfolio will be more diversified, you will become more protected from risks arising in the markets, and in the future you will be able to get much higher profits.
Be prepared to think differently
You should not base your decisions on what everyone is talking about and how everyone is thinking.
When Buffett began to manage money, he was initially considered strange. He worked in Omaha, not on Wall Street, he also refused to tell partners where he was investing their money.
People predicted that his case would turn into a collapse. However, after 14 years, he owned more than $ 100 million.
Many investors point out that you should not blindly follow the crowd. It is important to have your own opinion, which may differ from the majority opinion, but if you are confident in your own rightness, then you should go your own way.
Discuss the deal in detail before starting
Buffett from early childhood learned what needs to be agreed on the shore. So, in childhood, a relative hired him and his friend so that the guys would dig out a family shop after a severe snowstorm.
The boys worked until they froze to the bone, and as a result received 90 cents for two.
So now Warren Buffett is not trading. If he wants to buy a company, he immediately calls the price that he is willing to pay for it.
After that, he does not deviate from his words, since his proposals are always reasonable, and the price set is fair.
Pay attention to small expenses.
Buffett invests in a business run by those who care about even the smallest expenses.
One day he acquired a company whose owner was counting toilet rolls to determine if he was being cheated or not.
There is also a rumor that he admired a friend who painted only the front of the building overlooking the road.
There is such a story about Warren Buffett and his friend Bill Gates, the two richest people in the world. When they were in China, they decided to go to local McDonald's and have a bite to eat.
They made an order, and when it was time to pay, Bill Gates began to get his wallet, but Buffett stopped him with the words that he would pay.
What was the surprise of others when he took out the discount coupons that he brought from America!
Therefore, investors are advised to distinguish between cheap and reasonable, to be economical, but not greedy.
Limit your loans
Buffett never took loans for a large amount, either for investment or for a mortgage.
He received many letters from people who believed that their debts were quite reasonable and manageable, until once they were in debt so much that they could not cope with the situation.
His advice: negotiate with creditors to achieve at least minimal concessions.
Then, when you pay off your debts, start saving money so you can use your savings for investment.
Warren Buffett does not like risks, and he always says that he does not want to be in a position where he or his company Berkshire Hathaway will depend on someone else in terms of financial support.
With perseverance and ingenuity, you can compete with a more experienced competitor.
Buffett acquired Nebraska Furniture Mart in 1983 because he liked the way the company’s founder, Rose Blamkin, does business.
Rose began with a pawnshop, but over time, her business grew and became one of the largest furniture stores in North America.
Her strategy was that she negotiated very skillfully.
Undoubtedly, during your career you will encounter different situations and obstacles, but it is important to persist.
Know when to leave
Once, when Buffett was a teenager, he bet on racing. He lose.
Then, in order to recover his losses, he again made a bet and lost again. He did not repeat this experience again.
Remember that you should not repeat if you have already lost. It is important to understand when to leave.
It is better to lose a little, but leave in time, not trying to repeat the same mistake.
Admit that you were wrong and make other investments.
In 1995, the employer of Buffett's son was charged by the FBI with price fixing. Buffett advised his son to present the worst and best scenarios if he stays with the company.
His son quickly realized that the risks, if he remained in the company, far exceeded any potential profit, and the next day he quit.
Warren Buffett takes risks very carefully and tries to evaluate them wisely.
Investors often rate risks as synonymous with volatility. But Buffett says that risk is an opportunity to lose your original investment.
Know what true success is.
Despite his fortune, Buffett does not measure success by the amount of dollars.
In 2006, he promised to give almost all his fortune to charity, to the Bill and Melinda Gates Foundation.
He does not make any monuments to himself, no buildings bearing his name:
"At my age, you measure success in life by how many people you have that you want to love and love. This is the last test of how you lived your life."