10 Must Read Tips from a Legendary Investor

warren buffet investment tips

He is among the elite top notch investors known to the world if not the best of them all. Other than his investment ventures, he’s a kind-hearted man who’s acquired this title by quite a number of donations including the Gates Foundation among others. So, with all this having being said, we take a deep peek into some tips on investment from the big man, Warren Buffet.

1) Cash Isn’t An Investment


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In today’s world, most people tend to have just enough cash with them so that they don’t lose their comfort whatsoever. This however doesn’t qualify cash to be an investment. On the contrary, cash is among the worst of investments in due time. However, even those with this knowledge will still strive to have enough of it in order to keep people off from deciding what steps you should follow for your future.

The fact that every time there is inflation, the value of cash decreases is concrete evidence why cash is essentially not an investment.

2) Get Value for your money

Investment Tips from Warren Buffet

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Warren Buffet insists that after you make a payment, whatever it is you pay is referred to as price. He goes on to say that after payment, what you get is called value. This is a key factor in changing perspectives on how we go about our trades especially here in the UK. Warren tips that it is vital to derive the utmost value that your money could get from any one investment. This then interprets that it is prudent to look for a situation where you acquire anything for a low price while in essence, the value of that good or service is high.

3) There’s No Need To Take Big Risks

A favourite quote and one which has caught the ear of a significant audience here in the UK is that there is little relation between I.Q and a corresponding excellence in investments. He urges that anyone who has met the mark of ordinary and normal intelligence should just cultivate self-control from urges which one too many times get people in trouble. He insists on the idea that achieving great heights in investments is as a result of learning to make decisions that are wise and not on taking part in great risks. This approach is brought to light by his philosophy of making investments in areas you have knowledge on, paying attention to how your investment will bring returns.

4) Don’t Let Other People Control Your Actions

investment advice from warren buffet

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Even though you are going to keep off from taking risks, it is important to also think outside the box in your undertakings. After finding some unique niches, there will come some people who have a vision contrary to what you are eyeing. The best card you could ever play is to give such people the cold shoulder and get on with your business.

5) Do The Opposite Of Others

This is best demonstrated by the way Warren conducted his economic ventures during the era of the dot-com crash. He was among the few who didn’t come to terms with loss due to his own fluidity in doing contrary to whatever everyone else and investors were carrying out.

6) Don’t Lose Money

This, in a nutshell, is to bring the point home of playing safe in your investment endeavours. The reasoning behind all this is that whenever you accrue a loss; you get set back a couple of steps behind and this, in turn, makes you struggle to take care of your losses first before you could start making any profits.

7) Don’t Be General, Be Specific

warren buffett investing tips

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To anyone with a good or even blunt analytical mind, it’s pretty vivid that it is essentially impossible to master the whole market successfully. Bearing this in mind, Warren advices that it’s wiser to take a particular investment and exploit it to the best of your abilities rather than wasting time and resources to predicting entire market variations unsuccessfully.

8) Don’t Be In A Hurry To Sell

One of the secrets to Warren’s success lies in the simple trick of not leaving an investment when it’s going well and has a high likely hood of continuing with this trend. If an investment goes bad, however, it’s also prudent to leave it in the place of waiting for your debts to redouble.

9) Avoid Optimistic Conditions-Seek Out Pessimistic Ones Instead

There’s a noted inflation in prices associated with optimistic conditions. On the other side, you could find pessimistic conditions that have better value for an investor but are being trashed down by most people. In them, lies the gold mine that everyone looks for but can’t seem to find.

10) Invest In Yourself

ten great pieces of investment advice from warren buffet

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His most valuable and treasured advice is learning to invest in no one else but yourself. This enables one to gain the experience and expertise of investments which in turn, help one to acquire the skill of planning and putting to action of the plan – the first step to making billions.

Which of these points do you think appealed most to you?

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