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According to Forbes Reality Billioniers Index, Warren Buffett is the fifth richest person in the world. His net worth is 13.60 lakh crore rupees.
Warren Buffett, the world’s largest investor and fifth richest person, recently announced that he will step down as CEO of Berkshire Hathaway by the end of 2025. With this, his term of six decades will end.
Under the leadership of Buffett and Charlie Mangar, Berkshire Hathaway has turned into a group of $ 1.11 trillion from a struggling textile firm. Not only this, the company now has a cash reserve of $ 347.7 billion.
Warren Buffet says that ‘when others are greedy, be afraid, and when others are frightened, become greedy. There is some more investment lenson that has made Buffett successful. Here we are telling you their 6 investing lenses followed by Berkshire Hathaway during 60 years …
1. Invest in your ‘capacity’
Buffett says, “Risk comes when you don’t know what you are doing.” He has always advised investors to focus on businesses and areas that they really understand.
2. Think of long term and stay calm
Buffett says, “My favorite holding period is forever.” This simple theory underlines the importance of patience and restraint. In today’s high speed equity markets, this thing is often ignored and forgotten. Therefore, those businesses should invest with long -term holding vision that has the capacity of wealth compounding for decades.
3. Control your feelings
In many annual general meetings of Snowshire Hathaway, Buffett has been asking investors not to let fear or greed dominate their investment decisions. He had said- “Fear when others are greedy and when others are scared, become greedy.”
4. Ensure ‘Margin of Safety’
Choosing and investing stock on less than their interesting value helps to avoid mistakes. This classic idea of buffett helps in the protection of capital. It is especially useful during economic recession and uncertain market situations.
5. Avoid joining the crowd
Buffett and his old friend late Charlie Mangar have always advised independent thinking. The mentality that is commonly involved in the crowds seen in the crowd during the boom in the IPO Frenzy Market can lead to poor investment decisions. Good investment requires deep analysis.
6. Invest in yourself
Buffett has always advocated personal development and growth. According to Buffett, continuous learning through books, listening to intellectuals, building financial literacy and efficient guidance can help achieve better investment results.
