Top 5 Best Investment TIPS

Discussion in 'General Trading Discussion' started by Investor, Sep 16, 2014.

  1. Investor

    Investor Well-Known Member

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    Warren Buffet, legendarily notorious billionaire and investor, imparted the annals of his sheer financial wisdom, by giving a few tips one how to make the best investments, in any economy.

    Here are a few:

    When buying a stock, consider more than just the price - Buffet affirms that although an investment may seem expensive, and virtually able to break your pocket, if its value is going to turn over in a BIG way, and if your returns are going to be phenomenal (even if it's in the long run), it's far better to invest in such a treasure, than to waste your money on an investment that is affordable, but not likely to garner for your the same returns, and which might actually produce average-to-low returns.

    You don't have to literally be a "genius" in order to invest well
    - That's right: it may seem as though the "financial race" is only fit for those who have the most brilliant IQ that has ever graced the earth, but Buffet hints that it's a matter of understanding the financial market that's before you, and truly taking advantage of it's "ups" and "downs" by planning a strategy that effectively "rides the tide" and keeps you profiting for at least 99% of the time.

    Master "the basics" about investing - You may wonder what these "basics" consist of, but it's pretty simple: focus on How to Value a Business, and How to Think About Market Prices.

    For more on these tips, you can read the entire article at http://www.businessinsider.com/warren-buffetts-investing-quotes-2014-8?op=1

    What do you think of these tips? Are they "legit"? What kind of advice would you give to someone who is just getting into "the investment field"?
     
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  2. crimsonghost747

    crimsonghost747 Senior Investor

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    It's quite simple: no one can predict the future.That is why I enjoy Buffets way of being prepared for a bit of everything and investing long-term into strong companies instead of gambling with small start-ups in hopes of a quick win.
     
  3. Investor

    Investor Well-Known Member

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    Investing

    I think I have a fair amount of knowledge when it comes to investing, and over the years, I've made some good and some bad decisions, I will proceed to tell you all of the best possible advice that I can give in regards to investing.
    1) Before investing, do some market research. Do not invest simply because you want to, or because you've heard about it, I believe that we all have a thing called "conviction" within us, and when we've researched, and we don't feel the urge to go along with the investing, it is normally best to follow your mind.Ensure that before you invest, you find out ALL that you need to know about this investment.At times, we invest, with a hope that we will do well, or that we may make a bang, so instead of hoping, research.
    2)Never invest more than you have, simply put, if you have ten dollars, do not invest nine dollars, investments are generally very risky ventures and will result in major loses over a short period of time to a medium length period of time. Do not spend all your money on an investment, instead, put a little in, and when you see the returns, and you see that it suits you, you may put more in, but even then, you ought not to put your all in. You should invest gradually, investment are things that take time and so you should adapt to that concept, take the time with your investment.
    3)Never stop investing. Investing is the art of earning money, if you stop investing because you think you have enough, what do you think will occur? yes, you are right, you will forfeit earning more money than you have, do not become complacent in any point in your life.
    4)Help others. A successful investor will never make it on his own, make friends with people with your same mindset and who are as trustworthy as you are and work together. No man is an Island and no man can stand alone.
    5) Finally, Invest globally, foreign exchange is a good thing, especially if your currency you are earning is stronger than your local currency.

    I gladly ask for other tips on investing from you all. All the very best.
     
  4. Parassd

    Parassd Active Member

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    I've read much and scrutinised about warren buffet's life, he was business minded since childhood, he bought 2 stocks at the tender age of 5-6 years. The oracle of Omaha has always thought of many ways to earn money, and he's given out many tips to aspirants on how to be successful. The best advice that has appealed to me the most is when he said "never have only one source of income". I've been a victim to the foolishness of not having more than one sources of income and i've got a mind full of regrets.
     
  5. dianethare

    dianethare Senior Investor

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    Wow...one doesn't have to be a genius in order to invest well...coming from a world famed investor...talk of really making me believe :)
     
  6. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Do your homework, keep your emotions in check, be patient, have realistic expectations, plan according to your own unique goals / timeframes / risk tolerances, be careful who you listen to, and learn to manage risk through diversification and the selection of quality investments.
     
  7. Thejamal

    Thejamal Guest

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    "When buying a stock, consider more than just the price - Buffet affirms that although an investment may seem expensive, and virtually able to break your pocket, if its value is going to turn over in a BIG way, and if your returns are going to be phenomenal (even if it's in the long run), it's far better to invest in such a treasure, than to waste your money on an investment that is affordable, but not likely to garner for your the same returns, and which might actually produce average-to-low returns."

    I hate to be one to disagree with the greatest investor in the world, but this doesn't make any sense to me and directly contradicts good bankroll management principles. I mean, if we obviously know a stock is going to be a big winner, then we invest in it with no questions asked. But going broke on a stock that MIGHT turn over a huge profit in the long run as opposed to sticking with good bankroll management principles and investing in several other less lucrative stocks, but safer, doesn't seem like the best way to invest money.

    Perhaps I'm in the wrong here, but I don't look to take the risk of putting my bankroll on one stock that might only me pay me off way down the line in lieu of several less volatile, but safer stocks.
     
  8. Colebra

    Colebra Well-Known Member

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    Awesome reading!
    I do agree with Thejamal, but I would assume Warren Buffet would too...
    Good bankroll always comes first, no?
     
  9. JR Ewing

    JR Ewing Super Moderator Staff Member

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    When and where did Buffett ever say that? I have a feeling that's not an actual Buffett quote, but someone paraphrasing and perhaps even taking him out of context for whatever reason. It doesn't really make sense.
     
  10. Profit5500

    Profit5500 Senior Investor

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    Woah at five years old buying a share of stock? He must have really sharpened those business skills and understood the market like he does now. I would love to be at his level not have to worry about being broke even if the stocks go down in value Buffet is still a rich man.
     

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