Buffett developed a series of investment principles that were fundamental to his success. Find out what they are.
Warren Buffet He is an American investor and businessman, recognized for being one of the undisputed references in finance. Despite being one of the richest men in the world, Buffett has been a simple lifestyle and has a great commitment to the philanthropyBuffett has pledged to donate most of his fortune to charitable causes, including the Bill and Melinda Gates Foundation.
One of the keys that defined Buffett’s success is his approach to long term. Instead of seeking quick, speculative profits, the American investor prefers to invest in companies solid and qualitywith a proven track record and sustained growth potential. The tycoon shared his investment strategies over the years. Find out what they are.
warren buffet
Reuters
What are Warren Buffet’s tips for investing and making money?
The businessman shared a series of tips for the blog of the Spanish bank Bankinter, aimed at those who wish to increase their income on the Stock Market:
- Invest in what you understand: According to Buffet, ignorance can lead to impulsive and risky decisions. That is why he recommends avoiding investing in companies or sectors that are not fully understood.
- Having a conservative and defensive vision: Buffett warns that “before thinking about winning, the priority is always to protect capital,” with the premise of not losing money.
- Search for companies with a moat: A “moat” is a sustainable competitive advantage that protects a company from competition. Companies with deep moats tend to generate superior returns over the long term.
- Investing with a long-term perspective: Long-term investors can take advantage of the boom and bust cycles of financial markets to buy assets at attractive prices and sell them when they reach their intrinsic value.
- Be patient and disciplined: Successful investing requires patience and discipline. Emotional investors often make impulsive decisions that can harm their long-term results.
- Trust your personal instinct: According to Buffett, one knows better than anyone else which stocks to invest in. In this regard, he remarked: “Wall Street is the only place where people who travel in Rolls Royce get advice from people who ride the subway.”
Source: Ambito
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