Buffett bought his first stock at the age of 11. Taking inspiration, you can start investing today itself, no matter how young or old you are.
1
Long Term Investment
Buffett is a firm believer in long-term investing. He recommends buying and holding quality stocks for years, even decades.
2
Financial Literacy
He stresses on the importance of understanding financial statements and key financial ratios. If you are relatively new in the realm, get a financial mentor.
3
Invest In Tested Companies
In the beginning, invest in companies with reliable history of returns. Do not risk money on untested companies.
Focus on the intrinsic value of a company. Look for undervalued stocks with strong fundamentals.
5
Quality Over Quantity
Buffett values quality investments over diversification. Concentrate your investments in businesses which you have a knowledge of.
6
Avoid Quick-Rich Schemes
Buffett is skeptical of cryptocurrencies as they have uncertain returns. They may make you rick quickly, but there are equal chances of great loss as well.
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8
Margin of Safety
Buy stocks when they are trading below their intrinsic value, to protect against losses. Buffett is known for taking advantage of market crashes.
9
Competitive Advantage
Invest in companies with a durable competitive advantage (moat). It could be a strong brand, cost advantage, network effects, etc.
10
Continuous Learning
Buffett is known for his voracious reading habits. Stay informed about the companies you invest in, and the broader economic landscape.