Tips from the famous speculator Warren Buffett
Warren Buffett’s advice will be important to those who have decided to seriously invest.
Buffett became famous for his speculative opportunities and achievements. It is possible to trace the trend according to which, after each successful transaction, Buffett “goes to the bottom” until better times.
Warren Buffett’s Advice
Reflection and principles, which he knows perfectly, are the main connecting links of his success. However, rarely anyone pays close attention to these qualities in the market.
The term “reflection” refers to the analysis of his emotions, feelings, states, abilities, behavior, which Buffett owns very skillfully. It is these qualities that must be constantly analyzed and adjusted if you want to achieve maximum efficiency.
1. Quality is above quantity
Warren Buffett has a mindset focused only on everything first-class.
Usually he prefers to buy up the company completely.
However, if there is a large, successful company and there is no way to acquire it completely, then he is ready to buy even a small share of it.
After all, it’s better to own a small stake in a great company than to have nothing.
2. Learn to accept the inevitable losses
Even Buffett, who is scrupulously suitable for choosing stocks, cannot be completely sure of his rightness. Some hopes for making a profit may not be justified, so you should always be prepared for losses on your account.
3. Cache is the main thing
Buffett’s most winning rule is the ability to “sit on the money.”
This gives him financial freedom and flexibility during market downturns, and especially during financial crises.
He believes that every investor should have a cache in order to enter the market in time when everything becomes much cheaper.