In the world of investment Warren Buffet is like Sachin Tendulkar in Cricket. Starting investing at a very small age Warren Buffet has become one of the most successful investor in Stock Markets.
Generally, we expect to learn, earn and become successful like them. Here are few best quotes by Buffet which may help you to become a good investor and if you are lucky enough you may get success like he got in his life.
“Do not put all your eggs in one basket.”
This quote explains us the way we must invest. If we are investing everything we have in the same place. No matter how safe the place is to invest, there will always be a chance of losing everything. Though, this is a little pessimistic to hear. If we check the history a lot of billion Dollar companies got bankrupted and shutdown all at a sudden.
“Honesty is a very expensive gift. Do not expect it from cheap people.”
This quote explains us in two ways. For those who gives their money to brokers to make investments and make some money and for those who invest in chit funds. At that time it is important to check, is the ot the company is honest or not. For finding out the honesty you can use check with someone who is trading with them from a long time or They comes up with an offer check the possibilities of the offer they are telling or Invest in Mutual funds.
“Never test the depth of the river with both feet.”
If you want to check with some stock or some place you are investing which is alien for you. Invest in very small amounts until you can estimate and understand the future of your investment. This way you can decrease the risk. Investing a lot of money in an unknown place will be like checking the depth of river with two feet.
“Never depend on a single income. Make investments to make a second source.”
One of the most important mantra which everyone should follow is to have more than one income source. In this way the possibility of making money will increase. For example if you are doing a 9-5 job it is better you make investments somewhere else as well like stocks or having some business so that to make some money excluding the salary you get from your job.
“Do not save what is left after spending, But spend what is left after saving.”
The quote can be better explained by saying have a strict budget plan. While spending for your monthly expenses or while fulfilling your needs we must plan savings. It is important not to skip the savings. If the expenses increases better to adjust with other spendings than pulling money from savings. This was you can make easily plan on how to spend your savings in long term.
“If you buy things you don’t need, soon you have to sell things you need.”
There will be always some or other offers such as discounts, cashbacks on the products in the market which tempts us to buy them. So it is better to check twice before buying, is the product is essential for you or not. It is better you make a checklist of items you want and buy it when some offer comes up on that specific product.