TIPS FOR SUCCESS IN SHARE MARKET BY WARREN BUFFETT
Warren Buffett is a person who invests in the Stock market and becomes one of the richest people in the world. He was born on 30 August 1930 in the US. He is the founder of Berkshire Hathaway. Now I am going to tell you the tips for success in the Stock Market by Warren Buffett. Like a business model, Government strategy, Risk, Patience, Be an investor, not a speculator, Reinvest your money, Knowledge. To know all these things, read my article till the last.
1. BUSINESS MODEL
Warren Buffett says that before buying shares of any company we should not pay attention to its stock price. We should focus on its business model. Stay away from such companies whose stock price is high and their business value is low. If you do this then initially you may benefit but in the future, you will lose. If the company's business model is good, then you will get benefits in the future.
GOVERNMENT STRATEGY
Warren Buffett says that We should not invest money in companies affected by government strategy. Because the government keeps changing its decisions due to which the stock price of those companies is up and down. By investing in these companies you can incur huge losses. We should invest in those companies. Which is not affected by the government decisions.
RISK
What is the biggest risk in Stock Market? According to Warren Buffett, we are investing in a company and we don't know anything about it. That's the biggest risk. So before investing in any company, get a good knowledge of it. How is the company's performance in the last 5 years, How is the company's business model, In the future, this company will grow or not? So invest your money only after getting all the information about the company.
PATIENCE
According to Warren Buffett, if we do not have patience, then we should not invest money in Stock Market. Without patience, you cannot become an investor. A stock market is a place where patience is very much needed. If we do not have patience then we lose our money. So patience is very important for being a good investor.
BE A INVESTOR, NOT A SPECULATOR
According to Warren Buffett, A speculator buys a company's stock and sells it immediately. Those think only about the company's share price there is no information about the company's business model or the company.
But an investor always gets information about the company. Those always give importance to long-term investment. Because those know that the company in which they have invested money will grow in the future.
So according to Warren Buffett, You do not have to be a speculator rather you have to become an investor.
REINVEST YOUR PROFIT
According to Warren Buffett, you should not spend money earned in the market to buy anything rather, re-invest 50% of your earned money in the market. This will increase your investment in the stock market day by day.
KNOWLEDGE
Warren Buffett spends 70% of his time studying. Because according to Warren Buffett, knowledge is the solution to everything so you should spend most of your time getting information. For whom you may need to study about the economy, Stock market, Income, and also politics.
If you want to know more deeply about Warren Buffett and how do they invest in the Stock market? So you should read a book whose name is THE WARREN BUFFETT WAY In this book, the methods of Warren Buffett for investing are explained in depth. So you must read this book so that you get good information about investing.
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