5 Secrets of Warren Buffett's Stock Investing

5 Secrets of Warren Buffett's Stock Investing


If you are a stock investor, you must be familiar with Warren Buffet. Buffett became one of the world's richest people who succeeded because of his ability to invest in many companies. 

The way Warren Buffet invests is then used as a guide for investors.

If you want to be rich, you have to be patient in investing, especially in the capital market. You also have to be consistent in learning how to invest in order to get optimal results.


Here are 5 Ways to Invest Warren Buffet

1. Determine the type of stock to be purchased

The first thing you have to do is make a list of the criteria for the stock you are going to buy. 

For example, you choose banking, mining, or other types of stocks. You should not make price the main benchmark in the criteria for buying shares.


2. Invest in Companies That Are Familiar To You

You should invest in companies that you know. This is to make it easier for you to understand and follow on-going trends in your chosen industry. 

If you are interested in a company that you are not familiar with, then you must study well about the company and be careful in its financial statements and company ratios. Will it give you an advantage or you might even experience a loss.


3. Convince Yourself When Investing

This is one way of investing Warren Buffet. If you are not sure, don't start investing. You should first learn about the world of investment and the risks that may occur. 

In addition to stocks, you can save your money in mutual fund investments or bank deposits. Remember, don't rush.


4. Don't Miss The Company Information You Invest

You don't have to follow the company's updates every day. You can follow it every month. 

Check regularly every month so that you understand the movement of the company you are investing in.

5. Sell Stocks at the Right Time

Sell ​​your shares at the right time. If you decide to sell the stock when the price falls below the price you previously estimated.

So that you know the right time to sell a stock, you need to follow the news related to the stock. Don't let you lose.


Warren Buffett Investment Strategy

1. Find a Mentor to Learn Stocks

Stock investing requires a learning process from experienced people. Like Warren Buffet, learn from Ben Graham with his book The Intelligent Investor. 

Buffet also decided to attend Columbia Business School. According to Buffett, every investor can develop his own method. 

However, novice investors should not stop seeking knowledge and learning. You can follow investor forums and investor communities to get good and correct stock knowledge.


2. Don't Make Investment a Burden

Warren Buffet started investing in stocks at the age of 11. Buffet is a person who is very consistent in investing. 

Buffet learns a lot from books, lectures, and hangs out with investors. Make investing something you enjoy because it will be easier for you to develop investment skills and face investment risks.


3. Be patient in investing

Investing does require patience. Warren Buffet has been famous since his college days as a focused and patient student, especially in investing. The key is not to be lazy and make sure your emotions remain stable. 

Warren Buffet always teaches to always be rational in dealing with market situations.

This is the investment strategy according to Warren Buffet. Are you ready to invest? Make sure you invest in the right instrument and according to your target. 

Don't forget to also invest in insurance. Insurance is important as a form of self-protection in the future.


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