When we talk about investment, we often quote successful entrepreneurs like Warren Buffett and Larry Elison, among others. And that makes sense! Their success stories are no fairytales—instead, they have worked hard - really hard, in fact - to get to that point. Take the journey of Warren Buffett as an example here. By the time when Warren Buffett kicked off his first investment portfolio in the 1980s, it was pretty tough for him. None of his peers were ‘okay’ with his Berkshire investments to begin with. It was his expertise that allowed him to thrive in multifarious investment portfolios. Fast forward to 2022, Warren Buffett is the most successful investor. Fairly so; he is the richest man in the world.
So, what Warren Buffet has to say about investment? Most importantly, what he thinks of the cheapest ways of investment? This is what we are going to focus on in this article. Let’s dive deep without any further ado:
Look for Win-Win
The first investment advice Warren Buffett has to give is to look for the pros and cons of the portfolio. “Before you invest a single penny, look at the positives and negatives,” he asserts. Here is what it means:
Prior to investing, you do your proper research.
You analyze the positives and negatives of the portfolio, prior to putting your money into it.
Based on the analysis, you develop a sound plan that is synced with your goals.
However, it goes without saying that your investment objectives must be for the long term. Even if you encounter loss in the short term, it is okay. These short-term failures will set you up for long-term success. This way, you can the long-term game. And this is what investors like Warren Buffett do. They do not get bothered by short-term failure. Instead, they learn from it and implement it for long-term success.
You Can Not Outsmart the Market - Never!
The next advice Warren Buffett has to offer aspiring investors is to keep up with the market industry trends. For instance, if you are looking to invest in gold, you will have to be pristinely clear about its marketing strategies. You should have a crystal ball of the ebb and flow of the price of gold.
Thus, before you put your money into a portfolio, do not consider how cheap it is. Instead, know its market value.
At the same time, you should have a crystal clear ball of the market. Of course, you can not change the essence of any portfolio - let alone gold. So, make sure that your investment strategies align with the portfolio's market.