3 Greatest ‘Money Advise’ From Warren Buffett
Ace investor Warren Buffett turned 94 on August 30 this year, but his drive for generating profits has never stopped. The 94-year-old is relentlessly and tirelessly making billions a year through his investments in the US stock market.
With his decade-long years of market experience, Buffett has tips and advice for every generation. His rich money-making knowledge is the most sought-after, as investors want to replicate his trading prowess.
Also Read: S&P 500 Index Adds $5 Trillion in Market Cap in Just 20 Days
Over the years, Warren Buffett has provided innumerable tips to make money at every given interval. While some followed his advice to make money, others brushed it off, citing that he’s too rich to understand the common man’s problems. In this article, we will highlight the best ‘money advice’ that Warren Buffett provided over the decades.
Warren Buffett: Top 3 ‘Money Making Tips’ From the Ace Investor
- “Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1.”
Warren Buffett explained that even if your money remains the same, that’s a win and not a loss. However, losing money is the worst mistake as it could take days, weeks, months, or even years to break even. If the money is not lost, opportunities are aplenty in the markets that can be reinvested for better gains.
Also Read: Lloyds Bank Says Customers Spend Millions on Products That Never Arrive
- “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
When the stock market crashes and investors remain fearful, that is the best time to take an entry position, says Warren Buffett. This move could generate massive wealth as the sky is the limit for the next upside swing. Buying when the market is in the bullish territory could be a mistake as a downturn will wipe away profits in a jiffy.
Also Read: BRICS: Chinese Yuan Beats Euro To Become the Second Most Used Currency
- “If you like spending six to eight hours per week working on investments, do it. If you don’t, then dollar-cost average into index funds.”
The billionaire investor advised working-class people to invest in index funds like the S&P 500. Picking individual stocks needs thorough market expertise which an average employee cannot invest his or her time in. Therefore, investing in index funds every month adds more value as it buys both the highs and the dips and averages the value. In the long term, index funds keep going up and in return, deliver more profits than individual stocks.