One of the most successful money managers of all time shared a cardinal rule he follows when investing.
Warren Buffettthe American investor recognized as one of the most successful of all time, revealed ten keys to take into account when get rich. Among them, being different and not neglecting ant expenses.
Over the years, the president and CEO of Berkshire Hathaway accumulated a great personal wealth through its investments, which is why it is considered one of the richest men in the world. Now, with a great financial journey, he reveals a golden rule to succeed at the time of investing.
Warren Buffett’s golden rule of investing
Throughout his career, the investor known as the “Oracle of Omaha” gave plenty of advice, but here’s one that stands out: “Invest only in what you understand”.
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To begin with, this advice has the characteristic of being useful for any type of investor, from the beginner to the expert. But it also aims fundamentally at education and understanding regarding the different types and investment instruments.
The company in which Buffett has invested for more than three decades
In 1988, Buffett began investing in the beverage company. At that time, the shares were trading at a few dollars per shareTherefore, thanks to the exponential growth that Coca-Cola had, Berkshire Hathaway got massive gains.
In addition, the soda company also issues a dividend worth 0.44 cents per quarterso the company founded by Buffett earns almost $1 billion per year in dividends Besides that.
Buffett likes Coca-Cola stock for the same reason he likes all the companies he invests in, because they have worth. the soda company owns almost 50% of the US soft drink marketso as long as people consume these types of drinks, Coca-Cola will do well.
Source: Ambito
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