Warren Buffett is considered one of the most successful participants of the stock exchange. He publishes books that describe the secrets of success and recommendations for novice market players. This man has become a symbol of wealth and financial well-being, many traders who want to achieve high results in the world market take an example from him.
Studying the life principles of the famous investor will help you learn how to achieve the desired result and become a professional in your field. Biographical information is valuable material for those who are passionate about successful personalities, including Warren Buffett. Quotes and advice from an enterprising person will be useful to every participant of the international exchange.
How did Warren Buffett get rich? Biography of a famous investor
In 2020, financier Warren Buffett was in sixth place in the Forbes ranking. The fortune of the successful market player was estimated at 88 billion US dollars. This man is considered one of the most qualified investors in the history of the stock markets. He not only earns successfully, but also nobly disposes of the funds received. One of the main merits of Warren Buffett is a charitable foundation. He gives a large share of his earnings to this organization. Owning a multibillion-dollar fortune, the man lives in a house for $ 32,000, which he acquired at the start of his career.
If we talk about the long game, then the personality of Warren Buffett immediately comes to mind. This investor’s portfolio is designed to hold positions for a long time. The depositor selects securities that can bring good profits for many years. The stock trader defeated the market thanks to iron discipline and unshakable faith in the financial assets he bought.
Most of Warren Buffett’s advice boils down to patience. The specialist is sure that this is the quality that distinguishes a good investor from an ordinary trader. The man learned business lessons early. At the age of 11, he purchased Cities Service Preferred for the shares, paying 120 US dollars for them. The boy spent all the savings accumulated over 5 years. The value of assets was falling rapidly, and the young market player decided to sell securities at the first successful opportunity. When the quotes reached the base value, the boy recouped his investment.
Despite the return on investment, Warren regretted fixing the result prematurely. Very little time passed, and the price of securities increased almost 5 times. Buffett remembered this situation for the rest of his life, and he never made any hasty investment decisions again.
Warren has always been an enterprising man. During his school years, he worked part-time, studied accounting and filled out income declarations. His teachers believed that the boy would grow up to be a successful stockbroker. With the receipt of a school diploma, Buffett was in a hurry to direct his efforts to the development of his own business, but his father insisted on higher education at the University of Pennsylvania.
A couple of years later, the guy moved to Nebraska, and then continued his studies at a higher institution in Colombia. It was there that he met his mentor, Benjamin Graham. The economist told the student about investing, directed him to comprehend the world market. For some time, the men cooperated, and then each chose his own path. A successful investor still remembers his teacher, considers him a good friend and a respected person.
It is noteworthy that the man earned almost all his fortune (more than 90%) after the age of 50. He is an adherent of a conservative investment model. Getting rich quick is clearly not one of Warren Buffett’s main tasks. The shares of his investment portfolio provide a minimum level of risk and are aimed at making a profit in the long term.
Warren Buffett’s 5 Commandments!
When starting an investment activity on a global market, a person can enlist the help of professionals. If an investor wants to achieve high results, he should be interested in the opinion of famous representatives of the industry, including Warren Buffett. The rules of investing described in the books of the popular author have helped many market players to gain professional skills and get large revenues.
Below we will tell you about the most effective commandments of Warren Buffer:
- Avoid unnecessary loans. Loans, mortgages and installments look very attractive, but they can drive a person into a debt pit. It is possible that at some point loan payments will begin to significantly exceed income.
- Pay yourself first. Wanting to save a certain amount, a person must save money immediately after receiving a salary. He should set a specific amount that he will allocate monthly for investments. If the money is set aside at the end of the month, then the collected amount will be significantly less, and there will be unforeseen expenses. A person will not be able to distribute his money competently, because he will observe a large balance on the account.
- Long-term investments should remain a priority. Some people want to get rich quickly and are not ready to spend many years on this activity. Abandoning such ambitions and choosing a safe path is the best option, according to Warren Buffett. 2021 stocks should only be bought if these securities can bring good earnings in the long run.
- Pay attention to the value of the product. Buffett said that price does not always determine the real superiority of one product over another. This applies not only to stocks, but also to any market goods. It is better to buy promising securities at a regular price than ordinary financial assets at an inflated price.
- Warren believes that money is not an absolute value. He believes that there are much more valuable and meaningful things in the world. The millionaire says that he enjoys flying on private jets, but he values the health and well-being of his loved ones much higher than his financial condition.
To get more recommendations from a famous market player, the reader can purchase Warren Buffett’s paper editions. The books of this investor are very popular and are sold in most stores. To get acquainted with interesting biographical data, a fan should pay attention to biographical videos about Warren Buffett. The film will help you plunge into the difficult, but very exciting life of a competent financier.
The investor has always believed that self-development is an integral part of a successful personality. A person should constantly receive new knowledge, because this is the only way he can keep his mind in working order, according to Warren Buffer. Biographies, books, and other educational materials will help develop not only for beginners, but also for experienced market traders.
A trader can get new information and successfully apply Warren Buffett’s recommendations. Audiobooks can be downloaded for free on many information resources. All the necessary materials are freely available or bought at a relatively low price. When creating a unique methodology for market trading, it will be useful to take into account the experience of professionals.
