Warren Buffett’s Gold Investing Tips (23 Gold Tips)
Warren Buffett’s golden advice in investment is studied in most universities of business administration and economics and applied in most investment banks, because it is based on golden investment judgment and solid strategies for creating and creating wealth, so he is as they call him the greatest investor in the modern era, because he was able to build wealth estimated at more than 85 billion dollars without A legacy that helps him or leave him based on it or a technological invention, but he made this great wealth in investment methods available to everyone, by making rational decisions, controlling emotions, investing in intelligence, and working hard.
Whether in the diet or in investment projects, the stomach, not the mind, determines the results.
Intelligence alone is not sufficient to guarantee a successful investment, because the size of the mind is less important than the ability to separate the mind from emotions in making decisions.
Now let’s read carefully some of Warren Buffett’s investment advice and dive into it to understand this expert’s shrewd mentality. Tips you may hear for the first time. We will not tell you his famous phrase about saving, “Do not save what is left after spending, but spend what is left after saving.” Or his remarkable wisdom for risk “Do not test the depth of the river with both feet.” Or his famous saying about spending, “Do not buy what you do not need, the day will come when you will be forced to sell what you need.” In fact, in this article, we will discuss specific matters and tips that you should focus on to highlight the personality of a successful investor.
Warren Buffett’s Golden Investing Tips
1. Opportunities come rarely, so when it rains with gold, put a bucket, not a thimble. (A thimble is the funnel that covers the tip of a tailor’s finger to keep it from pricking needles.) The intention is to seize opportunities as soon as possible.
2. Learn from people’s failures more than their successes: Buffett believes that people’s failures have more lessons than their successes, so these lessons should be understood well; She is the biggest teacher.
3. Limit borrowing: Living on credit cards and loans will not make you rich. Warren Buffett never borrowed a large amount. He gets many heartbreaking messages from people who thought borrowing was controllable, but got mired in debt. And his advice to these people was: negotiate with your creditors to pay what you can, and then when you are free of debt, work to save some money that you can use to invest.
4. Learn about money: Part of investing in yourself should be learning more about money management. As an investor, Warren Buffett asserts that a big part of his job is to limit exposure and limit risk, and that risk always comes from those who don’t know what they’re doing.
5. Be persistent: With persistence and creativity, you can beat a more established competitor. Buffett acquired “Nebraska Furniture Mart” in 1983, due to his love and great admiration for the way her organization “Rose Blumkin” ran its business. Selling used clothes; To become the largest furniture store in North America, as its strategy was based on selling products at prices much lower than competitors, so that its major competitors agreed with manufacturers to prevent supply to it, so it contracted with manufacturers from outside the state, and it continued to sell its products at less than its competitors as it was. It’s also a ruthless negotiation, Buffett said. Embodying the unshakable courage that makes the underdog a winner, Buffett always sets the example of Lady Rose’s management style.
6. Know very well when to stop: When Buffett was a teenager he went to the race track, and then he gambled on a race, but he lost, and in order to compensate for his loss he gambled on another race, and lost again, to return empty-handed, after which Buffett felt very tired due to what Event; As he lost nearly a week’s profits. Buffett never made this mistake again. He advises that you should know very well when to walk away, or give up on loss, and not allow anxiety to trick you into trying again.
7. Invest in yourself: “Invest in yourself as much as possible when you can. You are your largest private asset so far,” Buffett says. He also says, “Anything you invest in yourself is ten times as likely to come back to you.” Unlike other assets and investments, your own assets, which are yourself, “no one can seize for taxes, for example, or steal them from you.”
8. The difference between successful people and truly successful people is that truly successful people say no to almost everything. By this, Buffett means that success requires intense focus, as there are many people who have long to-do lists and are working on being more productive, when in fact having a not-do list is more important, if he wants. A person has to do great things.
9. Never lose money: Warren Buffett’s advice # 1, which he follows insofar as he can “Don’t lose money” and rule number 2 is: “Don’t forget rule # 1.”
10. You don’t have to do extraordinary things to get extraordinary results.
11. Clarify everything related to the deal or business before it begins: Buffett explains that your bargaining power or the amount of influence you have on the bargaining is always greater before you start work, and this is when you have what to offer to the other party. Buffett learned this lesson roughly as a child; His grandfather, “Ernest”, hired him and another friend to remove the snow that was covering his grandfather’s grocery store, after a snowstorm hit the place. Buffett and his friend kept shoveling the snow for five hours straight, until their hands nearly froze. Then his grandfather gave them 90 Just a cent to share. Buffett was then shocked, how did he do all this hard work in exchange for such a small wage? From that moment on, Buffett sealed all deals by clarifying all their details before starting them with everyone, including friends and relatives.
12. Investing in companies and organizations that pay attention to small details: Warren Buffett invests in companies run by managers who scrutinize the smallest costs, such as a company that counts the number of toilet rolls, for example, and makes sure it’s actually 500 sheets; To see if she has been scammed or not.
13. Profit reinvestment: Warren Buffett learned this strategy early. In high school, he and his buddy bought a pinball machine; To put it in a barber shop. With the money they earned from her, they bought many of these games, until she reached eight, and they were scattered in various shops. When they sold the business, he used the proceeds to buy shares and start another small business. At the age of 26 he had raised $ 174,000, which equates to $ 1.4 million today. The point is that even if the amount is small, it can turn into great wealth.
14. It can take 20 years to build a reputation, and to demolish it only 5 minutes, so if you keep this in mind; You will definitely do things differently. And gaining people’s trust is an invaluable wealth.
15. Learn how to save: “I think the biggest mistake is not learning your savings habits properly early on,” Buffett says. Saving is a habit that should be earned. ” It explains that if a person has the ability to live at a lower standard than he is now; He can make the first million dollars very easily.
16. It is best to spend time with people who are better than you, as by selecting partners who have better behaviors, their good behavior will be reflected on you.
17. Diversification of investments is primarily a protection against ignorance related to these investments, so it stands to reason that diversification should be a little for those who know what they are doing.
18- The price is what you pay, and the value is what you get, whether we are talking about socks or stocks, so buy quality goods when their prices are low.
19. The key to investment is not to assess the extent of the impact of this industry or product on society, or to what extent it will grow, but rather to determine the competitive advantage of any particular company, and above all, to determine the strength of this competitive advantage.
20. It is much better to buy a “great” company at a “appropriate” price than to buy a “suitable” company at a “great” price.
21. Warren Buffett says, “I will tell you how to be rich, be afraid when others are greedy, and be greedy when others are afraid.”
By this he means: The key to investment is to buy while prices are falling, and to sell when they are rising. When prices are low, everyone refuses to buy. Fearing further downside, then you should buy. When prices rise, everyone stops selling. To achieve more gains; Believing them to keep rising, then you must sell.
22. Successful investing takes time, discipline, and patience. No matter how great the talent or effort is, there are some things that take a long time, you cannot produce a baby in a month by getting nine pregnant women.
23. “Charles Munger” Vice President of Berkshire Hathaway, who is very close to Buffett, says that the secret of Warren Buffett’s success is that he is constantly learning. So the best advice I can get from Warren Buffett is to commit yourself to life-long learning.
In the end, we showed you Warren Buffett’s golden tips in investing, we hope you have benefited from this article.
Investing Wealth Creation Investment Ways Tips Warren Buffett in Investing Warren Buffett
Warren Buffett Buys GOLD?
Warren Buffett has just released Berkshire Hathaway’s 13F filing and it shows a big new investment in GOLD! Buffett has long criticised gold investing, but seems to be jumping on the bandwagon in this time of economic distress.
A few points I’d like to address:
1. Warren Buffet did NOT buy gold. Instead, he bought shares in Barrick Gold, one of the biggest gold miners in the world. It’s important to differentiate these concepts. I can’t imagine anyone (even billionaires) buying USD 563 million worth of physical gold?
2. I appreciate your explanation on the “value” of gold and the effect of government printing new money to the value of currencies. However, the reason why Warren Buffet stays away from ‘investing’ in physical gold is because he doesn’t see an asset to be valuable due to its scarcity / finite nature. Instead, he sees the intrinsic value of an asset from its ability to generate cash flow / income. That’s why in his previous lectures / interviews, he often used farms or investment property (i.e. income generating assets) as examples to the assesses intrinsic value of an asset. Gold on the other hand doesn’t generate money, unless you sell it (even in such case, you effectively exchange the gold with money).
3. Barrick Gold is a dividend paying company. It has increased its dividend in the last couple of years, and has recently announced that it will increase its dividend further by 14%. Warren Buffet has long criticized gold investing, but at the same time loves investing in companies that has a strong record of dividends (e.g. Coca Cola). If you think Warren’s investment in Barrick indicates that he is jumping on the bandwagon of gold investing or has changed his views on gold, I think you are likely to be wrong. If anything, it just shows how crafty his investment strategy is – he created a new income stream for Berkshire by investing in a dividend paying gold miner, while other people who frantically ‘invest’ in physical gold (and in turn increase the demand for gold ) don’t generate any cash flow from holding this commodity.