Warren Buffett Advice: Proven Tools for Personal and Business Success
Warren Buffett Advice Investing is a pleasant combination of experience, information and knowledge.
The more you are in this story, the more you understand that to play the game, you must have patience and of course first-hand information.
In fact, you should be able to properly manage your capital in the storms that arise.
Summary Of Warren Buffett Advices ON Management
In this part of , we go to the book “Management Secrets of Warren Buffett” written by Mary Buffett.
If you’re looking for advice from a seasoned investor, 90-year-old Buffett is the man for it. So stay with us until the end of this story.
Simple But Effective Advice For Getting Rich
Getting rich does not depend on complex factors. You don’t need to become a physicist to get rich; However, most physicists are not rich either!
For this reason, when you hear the rules of getting rich from the mouth of the rich, you should not think that they have given you away. These rules and Warren Buffett Advice are really simple.
What makes you and them experience two different kinds of life despite knowing these rules lies in following these rules. Rich people live by these rules. But what are these laws? Let’s take a look at them:
Protect Your Money Warren Buffett Advice
Before stepping into any trade, you should think about what it will do to my principal, apart from the profit it promises. Can entering this deal, buying this stock or this investment hurt my money?
More often than not, it’s better to find a way to protect your principal rather than trying to calculate interest.
Practice Waiting
One of biggest Warren Buffett Advice secrets is “waiting”.
Patience is something that many investors are unfamiliar with. Usually, shareholders are drawn to various investment opportunities like a bee that is attracted to a flower.
In the meantime, they are afraid that by losing that flower or staying in the flower they have now, they will not have a chance to taste other flowers. This is while they live in a field of flowers. With this account, acting hastily, without thinking and following others without logic is not only not good but also causes harm.
Do Not Lower Your Price
When you want to participate in a trade, decide on the price in advance.
If the other party refuses to agree to your terms, get out of the deal. This story has nothing to do with your pride or class.
It’s about business and you have to protect your property from those who want to take it from you without paying the price.
Check The Correctness Of The First Brick In The Transaction
The first step in a transaction is your counterparty. If your other party is not a reliable and honest person, the deal you make with him will not reach the right destination.
So be careful. You have to ask yourself: “Am I willing to rock climb with the rope this person puts in my hands?”
If your answer is no, then you should close the deal. You should be able to trust this person in any field. Otherwise, the transaction before you now will be something of a cobweb. If you enter it, only God knows how you will be saved!
Increase Your Knowledge Warren Buffett Advice
Some believe that being lucky is one of the secrets of capital management. Because during capital management, many factors work hand in hand for you to meet with success or failure.
Warren Buffett’s opinion is different. He believes that the real luck of an investor lies in timely recognition of great opportunities. Like a hunter, he must monitor the position of various companies in order to make golden deals at the best time.
Be Careful Warren Buffett Advice
Words are the wind. It is the pen that lends credence to the words that hang in the air.
With this account, you should think carefully about your decision until the words are in the air and you have not yet signed anything on paper. Because erasing the ink of your signature is much harder than verbally rejecting a deal. This is another capital management secret that you should write in gold!
Instead Of Thinking About Solving Problems, Don’t Get Into Them
It is really an interesting point. Because we usually do the opposite; That is, first we accept the problem and then we join hands with everyone to get rid of this problem. The best thing is to open our eyes, recognize the problems from a distance, and when they approach us very easily, we turn our way.
When Investing, Think Of A Permanent Partnership
A real investor does not act like speculators. He is someone who thinks carefully about a deal before entering it, and after entering it, instead of running away, he stays where he is. This does not mean that you will blow all your capital by staying in the wrong trades. The point is, don’t pass up the chance to stay on good deals to try something else.
Be Careful What Advice You Take
Usually people whose job is investment consulting do not have much money in their pockets. However, they advise people for whom wealth is the constant story of their lives.
With this account, you should not think that the advice you get is completely correct and without bias. If these people had the real ability to give advice, they would use that knowledge to enrich themselves with the least amount of money they have.
Happiness and money are strangely tied together
Some of the Warren Buffett Advice go back to your heart. Having money alone cannot make you a happy person.
But if you are a happy person by nature, money can increase the sweetness of your life. So, if your goal from getting rich is to achieve happiness, you are on the wrong path.
Don’t sacrifice credit for money
Money comes and goes, whether it’s a little or a lot; Credit is hard earned and easily lost.
If you have credit, you can get off the ground over and over again.
Because others trust your knowledge, judgment and words. But if you make your credibility questionable, people’s view of you will change. That’s something money can’t buy.
The stock market does not show mercy to anyone
You should not expect that the capital market will hold your hand like a kind father, show you good opportunities and forgive you if you make a mistake.
This market is a strict teacher who does not believe in kindness! You either learn the rules of the game and become rich, or you are slow to learn and lose all your capital. There is no third way for this story.
Don’t complicate investing
Another secret Warren Buffett Advice is a simple look at stocks and companies.
Your success in the capital markets depends on simply understanding whether a company can continue to grow strongly over the next several decades.
With this account, even if you don’t know anything about complicated charts and strange strategies, you can still make the best decision for your investment.
Be careful about your trading habits
Many traders automatically implement a trading style on all their capital after a while. They are not willing to change their trading style so easily. This story increases especially when their style shows good performance. At the same time, new experiences should be taken into account and new styles should be allowed.
Each share is a small part of a business
Another secret of capital management is to look at stocks as a small part of a company. Many investors do not have such an insight into shares. They think of shares as a kind of paper that can be sold when the value rises. Meanwhile, looking at stocks as part of a company gives investors a deeper look to make smarter trades.
Do you have the courage to stand against the winds?
Warren Buffett has a strange tendency to focus on his analysis and strategies of the capital market.
He opposes most of the prevailing currents in Wall Street and does not pay attention to them.
This is another management secret of Warren Buffett.
He has stuck to his investment beliefs and will not let the gusts of Wall Street uproot him. Maybe that’s why he was able to acquire a fortune of several billion dollars. You should also seek to build your own trading rule book and not let every breeze take you with it.
When investing, look at the business, not the person running it
There are many good businesses that are run by ignorant people. You should not make this your criterion. If a business is good, a good future is predicted for it, finally, a right person will stumble upon it and bring it back to the main road.
Hope is not a good investment
When investing, you should not trade based on the hope that a stock will grow in the near future.
You have to act based on the knowledge, the result of the analysis and the experience you have gained. Money is the most spectacular hope there is. So look at the money that is flowing when you decide to trade.
Don’t fall for bubbles
Not liking bubbles is another secret of capital management. Maybe at some point you will face a share that, at first glance, goes up the stairs two to one. You have to be careful.
This story can be considered a big bubble to swallow your shares. You should seek to discover the true price of that share. All stocks return to their original price despite ups and downs.
Besides, the world is changing every day. Maybe a company that is doing great today has no value anymore when its market is destroyed. So sometimes raise your head and take a look at the future path of companies.
A good investor is an accounting expert
Accounting is the language that business speaks. If you are not fluent in this language, how can you understand what the companies are saying and get out of their business. So, even if it seems difficult, try to learn accounting once and for all.
The real story is the value of companies in the long term
Another secret of capital management is understanding the price of companies according to their value in the long term.
If a company performs well in the long term, its shares will undoubtedly become more valuable. Once you find such companies, don’t let them go so easily.
Sometimes due to market waves, the real value of companies is underestimated and sometimes they are overvalued. In both cases, as we mentioned before, the prices return to the real value of the companies. So be patient.
Capital hungry companies are not good options for investment
When you choose a company to invest in, you need to understand whether this company needs your capital or not. Companies that seek to attract capital from door to door will not be satisfied in the future. Following this incident, your stock will not grow.
But companies that work well without your capital and are able to afford their expenses are the best opportunity for investment. Because in the future, they will increase the value of your shares
Have a coach
Navigating the stock market without a mentor is like navigating the freeway without turning on your headlights. When you work in the capital market, many adventures affect you.
If you don’t have a trunk to lean on and a professor to ask questions to, you might easily lose your capital. Warren Buffett chose “Benjamin Graham” as his investment guru. You also choose one person. How is Mr. Buffett?
Buying cheap will not make you rich
Some of the secrets of capital management are a reversal of old secrets.
You might think that call yourself an investor and get rich by buying shares cheaply and selling them when they grow significantly; But this story is an old strategy that cannot answer today’s market with so many investors. You have to find a way to discover valuable companies and stocks.
start this work by considering the competitive advantages of companies or get help from your own special factors for this work. In any case, buying cheap cannot be considered a full-fledged strategy.
Imitation Is The Worst Way To Invest Warren Buffett Advice
We come to another secret of Warren Buffett’s management and that is “not imitating”.
If you seek to achieve success or wealth by imitating the trading methods of the great men, you will soon meet with failure. Because you stand in your own place and that person stands in his own place and makes a deal.
It is just like a commander in a mountain battle uses the battle methods of a great commander in water battles. The practices are not wrong, just misplaced. Try to get ideas from other people’s investment methods to make your own special investment method, rather than copying it from zero to one hundred.
Use The Experience Of Others Instead Of Experiencing
it Repeating a mistake that others in the capital market have experienced over and over again is a bigger mistake.
Instead, you can go to the stories of other people’s mistakes and find out what the consequences of doing what.
You shouldn’t just warm your head by reading other people’s success stories. Undoubtedly, you will learn more from understanding other people’s mistakes.
Do Something You Love Every Day Warren Buffett Advice
Your life as a human is not so long that you want to spend all your days in suffering. You should wake up every day excited to do what you love.
You shouldn’t waste your days doing something you hate just to make more money. Gone days will never come back. If you are looking for a job that you love and that brings a smile to your face, money will come to you.
What Are You Doing Now?
Ask yourself what you are doing every day when doing every transaction.
Can you explain what you do to others?
If you can’t do it, or even worse, you don’t have a good reason to do it, then why do it?
Constantly asking yourself this question will help you avoid making funny mistakes in the capital market!
What was the main message of Mary Buffett in Warren Buffett’s Management Secrets Book?
“Mary Buffett” as Warren Buffett’s daughter-in-law got to know this investment genius closely.
During the years of living with the Buffett family, he learned a lot from them.
Buffett’s thinking style and attitude were ingrained not only in investing but also in his personal life.
The points that Marie expressed in her book are examples of the wealth of experience, knowledge and information of this old man of the investment world.
