Also known as the "Oracle of Omaha," Buffett built his $ 87.2 billion worth of "buying princes for the price of frogs," as he likes to say.
It debuted on the stock exchange early, more precisely at the age of 11. While his colleagues were playing in the street, young Buffett bought stocks. At that time, he learned the importance of patience and timing before buying or selling any asset.
He began by noting stock prices on his father's office slate, a way he found to track and understand each company better. His first purchase came a few months later when he acquired six shares of Cities Service, a $ 38 / share oil company, with his sister Doris.
Buffett believed stocks were undervalued and he was confident he could make a good profit out of them. Unfortunately, the stock lost almost three times its value a few weeks after Buffett bought it.
Despite his sister's insistence on getting rid of the role, Warren chose to keep it. Persistence allowed him to see the share price reach $ 40, when it sold and pocketed a profit of $ 2 per share. With cash in hand, little Buffett had the unfortunate experience of watching the action shoot for $ 200 without him. It was at this time that the future billionaire and CEO of Berkshire Hathaway learned three valuable lessons it would take for the rest of his life:
1. Do not panic if stock prices fall.
Your stock market performance is also related to emotional control. In other words, you need to act rationally and not emotionally so you can put your investment plan into practice, withstand the market oscillations and thus get good results. "If you can not control your emotions, you can not control your money," says Buffett.
2. Do not sell the stock to have a short-term profit
Buffett believes that the best company to have is one that offers long-term prospects. According to him, anyone who thinks in the long run avoids common mistakes, such as investing in bad deals and spinning the wallet too much, which brings significant costs. The investor explains that the long-term investor is because he understands the reason of the capital market: to finance and to be a partner in successful projects. "If you have stocks of an excellent company, do not sell them while it's still excellent," says the wise billionaire.
3. Always take responsibility when investing
If you invest in what you understand, it will be easier to set a price and stay informed about industry trends. If you do not understand what the company does or how it makes money, how will you manage your investment? Buffett often talks about the "circle of competence," a way for investors to focus on the sectors they know best. When leaving their circle of competence, the investor is more susceptible to speculation.
It debuted on the stock exchange early, more precisely at the age of 11. While his colleagues were playing in the street, young Buffett bought stocks. At that time, he learned the importance of patience and timing before buying or selling any asset.
He began by noting stock prices on his father's office slate, a way he found to track and understand each company better. His first purchase came a few months later when he acquired six shares of Cities Service, a $ 38 / share oil company, with his sister Doris.
Buffett believed stocks were undervalued and he was confident he could make a good profit out of them. Unfortunately, the stock lost almost three times its value a few weeks after Buffett bought it.
Despite his sister's insistence on getting rid of the role, Warren chose to keep it. Persistence allowed him to see the share price reach $ 40, when it sold and pocketed a profit of $ 2 per share. With cash in hand, little Buffett had the unfortunate experience of watching the action shoot for $ 200 without him. It was at this time that the future billionaire and CEO of Berkshire Hathaway learned three valuable lessons it would take for the rest of his life:
1. Do not panic if stock prices fall.
Your stock market performance is also related to emotional control. In other words, you need to act rationally and not emotionally so you can put your investment plan into practice, withstand the market oscillations and thus get good results. "If you can not control your emotions, you can not control your money," says Buffett.
2. Do not sell the stock to have a short-term profit
Buffett believes that the best company to have is one that offers long-term prospects. According to him, anyone who thinks in the long run avoids common mistakes, such as investing in bad deals and spinning the wallet too much, which brings significant costs. The investor explains that the long-term investor is because he understands the reason of the capital market: to finance and to be a partner in successful projects. "If you have stocks of an excellent company, do not sell them while it's still excellent," says the wise billionaire.
3. Always take responsibility when investing
If you invest in what you understand, it will be easier to set a price and stay informed about industry trends. If you do not understand what the company does or how it makes money, how will you manage your investment? Buffett often talks about the "circle of competence," a way for investors to focus on the sectors they know best. When leaving their circle of competence, the investor is more susceptible to speculation.