6 Investing lessons from Warren Buffett

6 Investing lessons from Warren Buffett. There is lot to learn from this man in the world of investing. Here are the six reasons from Warren Buffett that you can use to invest better

6 Investing lessons from Warren Buffett
6 Investing lessons from Warren Buffett

Warren Buffett who is also known as the “Oracle of Omaha” is no stranger to the world of investing. There is lot to learn from this man in the world of investing. Here are the six reasons from Warren Buffett that you can use to invest better.

6 Investing lessons from Warren Buffett

1. Limit what you borrow: More is not always a good case in loans and credit card debt.With a daily offers from the e-commerce companies,it might be tempting you to buy a mobile phone on EMI.But you should keep in mind that it loses its value over time.It is best if you limit your borrowing.

2. ”Price is what you pay,value is what you get”: Most of us know this.The money we pay for something and the value we get out of that most of the time does not have a correlation.You could possibly buy a one crore posh appartment but it doesn’t mean you guarantee a high quality of life.

3. If you buy things you don’t need,soon you will sell things you need: To be a successful investor,you need to use due diligence.Spending wisely is not about being miserly.As the saying goes-a penny saved is a penny earned.

4. It’s far better to buy a wonderful company at a fair price than to buy a fair company at a wonderful price.

4. Be loss averse: Majority of investors measure performance solely based on returns.Buffett advices that you should not strive to make every dollar a potential profit which involves too much risk. Instead you should be loss-averse.

5. Be tax savy: Be knowledgeable about tax laws and use them to your benefits.Before you invest make sure you understand the tax implications of your investment.

6. There are two rules which you have to follow:

Rule 1: Never lose money.

Rule 2: Never forget Rule 1.