Warren Buffet is one of the popular names in the investment field whose guidance is followed by many investors with an aim to make profits, as he has become one of the richest persons in the world.
New investor in the investment field can consider some of his principles and guidelines of investing.
Buffett's Two Rules For Investing
"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1," is one of the famous Warren Buffett quote. What it means if you should not take great risks with your money when you are not sure.
Invest in yourself
Buffett believes and says that you should invest in yourself in every possible way, which will come back 10 fold higher with time unlike other assets.
Healthy financial habits
Habits are something which can have a great impact on lifestyle as well as investments. The major mistake investors do is not having the habit of saving regularly.
One can make this a habit by automating your savings and investments.
Cash on hand
Well, many other experts do not believe in cash investments. But Buffett believes that one should have enough cash on hand to meet any emergency.
One can consider investing in liquid funds where there is no risk.
Learn about money and investments
Learning and understanding money and how it works will be of great help. "Risk comes from not knowing what you're doing," Buffett once said. If you are aware of your investment and understand the risk involved with it, one can easily mitigate the risk.
Investment with long term view
Buffett's famous investment tip is that one should consider investment as a long term view to reap maximum benefits.
Buffett in most of his speeches has said that one should avoid debt. Most of us are dependent on credit cards when it comes to purchasing things.
Always using a credit card is not a smart thing, as it will make you spend on unwanted things and interest rates charged on them are also high.