What makes Warren Buffett the genius that he is and what are his investment strategies?Warren Buffett is arguably the most well-known and widely respected investor of all time. Buffett is also known for his folksy charm and his memorable quotes about the art of investing.
One of his many quotes being, “Invest in companies you believe in. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
When you’re aiming to reach the top of the mountain, it makes sense to step on the footprints of those who have successfully made the climb before you. Your odds of success can increase exponentially and that is what following Warren Buffett’s investing strategy does for you.
Investment guru Warren Buffett, is a staunch believer in the value-based investing model, and has held on to the belief that people should only buy stocks in companies that exhibit solid fundamentals, strong earning power, and the potential for continued growth. It may look like a simple concept, analyzing them is not always easy. Buffett favors companies or invests in companies that distribute dividend earnings to shareholders and is drawn to transparent companies that rectifies their mistakes.
Warren Buffett is famously patient when it comes to investing. He believes that holding onto quality businesses for long-term is the perfect base to generate wealth. This is because good companies always tend to appreciate in value over time, even if there are short-term volatility or fluctuations in the market.
Warren Buffett’s “Buffettisms” reflect in his genius investment ideas, unique approach to investing and his undivided focus on value, knowledge, and long-term thinking along with his focus on doing your homework have made him one of the most successful investors of all time.
If there is one practice that infuriates Warren Buffett, it is that of taking on debt to finance the buying of stocks.
Looking at the best financial tips from Buffett:
Save before you spend, not the other way around.
As Warren Buffett said, “Do not save what is left after spending, but spend what is left after saving.”
Warren is a huge believer that people need to pay themselves first. If not, it’s easy to pay everyone else and forget about saving for yourself! Make deductions to make sure you save or invest your money before you pay everyone else.
Always be prepared for the unexpected.
Even though he is worth 113+ billion, Warren Buffett still lives in the same house he bought in Omaha, Nebraska for $31,500 in 1958!
So next time you get a raise or bonus, don’t increase your lifestyle and increase your budget; otherwise, it may just offset your raise. If you start earning more and then go back to spending more; you’re right back in the same position as before.
Don’t buy a stock today you wouldn’t want to own in 20 years.
Warren Buffett understood the importance of time in investing and has reaped the benefits of compounding.
Invest in your own success.
Here is the investing lesson, when life gives you lemons, don’t just make lemonade, but also make a lemon pie, a lemon jam, a lemon pickle, and sell all the remaining lemons at the bazaar for a big fat profit.
Take advantage of a long-term mortgage.
He is a firm believer of long-term mortgage for home. When you take out a long-term loan, you buy yourself flexibility by not locking yourself into the higher payments that come with a shorter-term loan.
“Every decade or so, dark clouds will fill the economic skies and they will briefly rain gold. When a downpour of that sort occurs. It is imperative that we rush outdoors carrying washtubs and not teaspoons,” Warren Buffett.
Buffett’s advice on one easy way to make money, “to become worth 50 percent more than you are now, at the very least is to hone your communication skills, both written and verbal,” through a video posted on LinkedIn.
Final Thoughts
If you learn and apply Buffett’s best investment tips and his genius investment ideas, it is definitely going to give you rewards.
