How to Begin investing like the rich
Investment is one of the less stressful way to grow your money unlike starting a business, not everyone has the zeal or the time to grow a business from scratch, the other way to go about increasing the value of your money is by investing. The truth however is that there are millions of money lost on investment every day but because people die through road accident everyday does not mean we should run away from road transportation and the same principle applies to investment.
Warren buffet who for very obvious reasons has been labelled a king in investment and he has two rules to investment and they are: Never lose money and the second one is never forget the first rule.
Never lose money to me sounds almost impossible because I have friends who are pretty good with this game and have lost money for real, but I have been made to understand that it is possible to invest without losing money.
Understanding the true worth of a company.
Any good investor knows how much the value of a company is before he makes any investment but a lot of new investors make the mistake of taking the price on the stock market for the value of the company. The stock price of a company can easily rise or fall, even a slight negative news can reduce the price of the company but the value of a company does not fluctuate easily and that is the true worth of the company.
Warren Buffet’s rule of investment cannot eliminate the risk linked to investment but we can reduce the possible risk by carefully understanding the value of the company. A good investor only invests in companies that have sustainable values and are worth the investment.
Look on to long term values.
Warren buffet sticks to his rule of not losing money while investing because he only invests in companies that are straight forward and easy to understand, and instead of looking at the current value of the company, he is more interested in the long term value of the company and the reason why customers will keep coming back for that product, if there is no reason available for customers to keep coming back, then the company does not have a long time value and warren knows it is not a promising place to invest.
A sustainable brand.
A good brand is one legacy that people fight for, once a company is able to pitch its brand to the public and it is acceptable, the company just needs to sustain the brand and everything remains under control. While you are trying to invest, look out for good brand values.
Hello excellent publication. It is important that every investor takes the time to correctly analyze the object of his investment, so that his decision is as correct as possible. It is interesting to develop the ability to identify the true value of a company (consequently you would only invest in those that have sustainable values over time and that would be great)
Proper analysis before investment is done is highly necessary thanks for reading.
also never forget to take a good look at the team behind a projects, especially if it is a pretty new start-up. A good team stands more chances of getting it right, hence a good investor checks the background of the project team before putting his money on their head.
That's correct a good team with integrity can be trusted more thanks for reading.
Absolutely true price of stock market are pretty much uncertain. Although investments aren't easy they also carry some amount of risk but if you take all the tips mentioned above in to consideration then it's easy to avoid losing.
Very interesting topic with full of tips thank you for sharing.
Thanks so much for the beautiful comment.
Hello @ajewa. This would pass a one of the most detailed investment tip I read in a while. I can't begin to point the elements in your article but its great. Nice, solid read. I just bookmarked it. I also shared the article on my blog.
I really appreciate the lovely comment thanks for reading.
Warren Buffet is one of the best investors in history, the truth is that these rules are very important for any investor, particularly I have not invested in the stock market, but surely in the future I will and I will keep these good tips in mind.
Thank you for sharing.
@lenonmc21
Financial Markets Analyst
Thanks a lot for reading.
Very good advice, as investors in the financial markets we are very aware of the rules of this important investor like Warren Buffet.
Great post.
Erarium Project
Financial and educational community
@erarium
Thank you @erarium
Greetings @ajewa very good your publication, are very good principles that we must take into account, as it says in your writing to invest should be selected companies that are simple and easy to understand, I will take into account thanks for the guidance !
See you later, I hope you have a great weekend !
Thanks a lot @amestyj