Warren Buffett who is arguably one of the succesful investors of all time turns one year older today. Often referred to as the "Oracle of Omaha," the chairman and CEO of Berkshire Hathaway owns billions of dollars, making him the second wealthiest person in the United States and the fourth-richest person in the world, with a total net worth of $77 billion.
The success of a legendary investor, philanthropist, and business magnate needs no introduction. Warren Buffet has gained immense experience as an iconic investor. It is said, when Warren Buffet speaks, everyone listens. On the occasion of his 87th birthday, we bring you some of his greatest advices that will make you smarter about your money.
Buffet’s only two rules for investing. He has given this advice to all the CEOs when it comes to investing. This precise quote is much fruitful for all the investors to spend their money wisely.
Here Buffet doesn’t mean to never sell a stock. In fact his quote means to become part-owner of great companies that, should deliver big results than a bunch of short-term bets. “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever. We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint,” reveals his full quote in a letter to Berkshire Hathaway.
Understand the ups and downs of the company and take decisions accordingly. When dot-bomb crisis happened in 2001, Buffet stated, “You only find out who is swimming naked when the tide goes out.” The truth about Buffet’s success is not only he remains stood with discomfort but embraces every opportunity that it brings.
In a speech to “Financial Future of American Youth,” in 1999, Buffet said, “I will guarantee if you run up big credit card debts, you will be in trouble probably the rest of your life in terms of your financial situation. On the other hand, if you get ahead of the game, even on a modest scale, so that money is coming in from investing and people owe you money or equities owe you ownership, you’ll be way ahead of the game as opposed to you owing your creditors every month. So my advice to you is: if you can’t pay for it, don’t buy it.”
Buffet has done something which others would have never imagined. Finding great companies for the investment is the first step on the road to success. In other words, the legendary investor says, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
Happy Birthday Warren Buffet
Hope these advices help you to invest your money in a right way.