The 10 Commandments Of Investing. Warren Buffett
One of the most popular and respected investors on the financial
market is Warren Buffett. He has managed to earn his capital thanks
to the investments in shares. Forbes magazine lists Warren Buffet
as one of the richest people in the world. Estimated calculations
of the Warren Buffetts capital in 2014 have shown that the size of
the capital is about 66 billion USD.Once, Oracle from Omaha or, as
some people call him The Seer has written down 10 principles, which
are being used in the whole world by the investor.1. Investment is
about investing money today and receiving even more money
tomorrow.This axiom will always stay the main principle of
investments. Since we always invest our money and time in the
beginning of something. But you should not start investing money in
everything you see. Cold mind and accurate calculation of possible
situations will really help you out to increase your funds.At the
same time, you should think in prior what is better: to buy a new
iPhone 6 or invest funds in the profitable project and to buy in a
short period of time buy this phone, but there will remain funds
for the future investments. Plus, this model might be even cheaper
in a matter of time, when the 7thone will come out2. Buy the shares
of the companies, the products of which you like personally.Buying
the shares of the company you like, you choose something that is
important for you and has some meaning for you. Mr Buffett has
managed to earn high profits by following this principle.3. Never
invest in a business you cant understand.In case the person invests
solely based on the rumors and recommendations, then he may appear
in a very inconvenient situation. When you invest your funds in the
business, you need to learn the area of investment very
attentively. This will save investor and will let understand
whether this investment bring profit or no.4. Never stay with the
losing businesses!.You should not wait for the miracle that the
share will increase in price. When the company is successful and
sharply looses its positions of the market, it is better to sell
your shares. Too little companies have managed to recover their
reputation and increase the share price after they have faced the
considerable losses.5. Each rising share has the successful
business behind it.The principle speaks for itself. Planned and
successful development of the company provides the trust of the
investors and, in some period of time, the price of the company and
the share price will increase. But without the successful business
running it is impossible to develop this model.6. Invest your money
in international companies .You should not always count on the
regional companies. The wider the network in the world is, the more
stable the development of the company will be. Which means that the
chances to loose are much less.7. There are shares-winners on the
market. You need to find them.Warren Buffett has become successful
thanks to such type of investments. For this you should either be
very educated and smart person, who can oversee the potential of
the companies on the market.8. If you use calculations, you will
not definitely reach the top, but you can surely loose your
mind.Stock market, as well as the Forex market are connected with
math. When you work on these market continuously, make the charts,
calculations, look through the prices, you just make your brain a
great training. Many scientists have proofs that math calculations
decreases the chances of psychological diseases.9. History of the
company is the main thing.You should not look at the history of the
company or charts of the oil prices in a short period of time. You
should determine the trend. In Forex there is even the phrase:
Trend is your friend.10. You cant produce a baby in one month by
getting nine women pregnant.This is more connected with
understanding of the market. Many prices do not grow in a matter of
one day. Everything needs time.
