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(26-1-2015 LiveBombayStockExchange investing tutorial series) - Every person in this world has a role model, which he wants to replicate, copy, follow diligently. A role model is someone which is the target personality one wants to become in his life. People working in different industries, be it IT, Entertainment, Media have their respected role models who are
often the best and the most famous people of these industries. Similarly a person who has made stock market investing as his bread and butter earner would probably make the legendary investor Warren Buffett as his role model. This looks like a very logical and rational role model for someone in Stock market investing. Warren Buffett has always topped the list of top global investors who have made huge bucks from investments in stock markets.
So How can a person who is new to stock market become a star of stock markets. The best way for this is to understand Warren Buffett's stock investing strategy. For thinking like Warren Buffett one has to be in his shoes, ie a person should think on the lines similar to how Warren Buffett use to think and analyze a stock before investing his money into it.
Following are few of the investing strategies which Warren Buffett implemented:
while taking his investment decisions. So be in Warren Buffett shoes and think in way he did on his way to become the greatest investor of the stock markets across the globe.
1. Stop listening to daily Stock market news : Legendary stock market investor Warren Buffett hardly switches on his TV for watching stock market forecasts. Presently there are lots and lots of business channels who provide stock market forecasts. These channels actually add a lot of confusion in the minds of investors, whereas they were programmed to remove it. Remember when you are into Warren buffet Shoes - Don't listen to market forecasts. Do your own analysis, make your own investment strategy and stick to it. Ignore stock market forecasts which tells stocks are set for going north or south. The whole logic of Warren Buffett investmenting technique is that always invest in stocks which are under valued but have lot of growth potential in future.
2. Don't be Emotional Investing fool: Emotions have no role to plat while investing your money into stock markets. When wearing Warren Buffett shoes one understands that all the investment decisions have to be rational, fundamentally strong, based on logical probabilities. So don't become a Emotional Fool of stock market. Just follow this Warren Buffett strategy diligently.
3. Master the art of Probabilities: As Warren Buffett says always calculate the probabilities effectively. Imagine playing cards and making all probabilities wrto your cards and then make a move. In stock markets these probabilities consist of economic conditions, sector growth aspect, quality of management of the company etc. Create your own investing formula from these probabilities and then invest in the stock which has highest probability of being a hit from the shortlisted lot. If you tend to be in Warren Buffett shoes then mastering the art of probability is a must before making investing decision.
4. Analyze business and benchmark: Stock price is only one aspect of a good investment decision. According to Warren Buffett if you invest in a company with strong fundamentals, strong management then stock price has to rise in future for sure. If management of a company is doing things which are needed for growing profitability and bottom-line growth then it's stock price is always heading north in future.
5. Think as owner of business: According to legendary inestor Warren Buffett one should always think as a part-owner of the company in which he has invested. He should not think as a investor but as a owner of the business. This would help in making key long-term investment decisions instead of just exiting a business when stock price rises meagerly.
6. Justified Diversification: Warren Buffett is very critical about over diversification or under diversification of your stock portfolio. One has to find a balance and diversify his money appropriately. Over diversification is as bad as under diversification of stock portfolio. One should make increase his investment gradually in companies which are doing good in his portfolio.
7. Long term is the best way of investing: Warren buffett only knows that the long term investments are best and would remain the best investments forever, never fall in trap of share trading. While it should be stock investing.
Hence these lucky 7 tips for being in Warren buffett shoes have to be followed for making big money in stock markets. So are you into Warren Buffett shoes yet? - Do leave your valued feedback/comment about my blog posts as it helps in improving the quality and reader experience of the blog. Leave a comment below, like my facebook page -LiveBombayStockExchange fb page, share it! you can also follow by email
often the best and the most famous people of these industries. Similarly a person who has made stock market investing as his bread and butter earner would probably make the legendary investor Warren Buffett as his role model. This looks like a very logical and rational role model for someone in Stock market investing. Warren Buffett has always topped the list of top global investors who have made huge bucks from investments in stock markets.
So How can a person who is new to stock market become a star of stock markets. The best way for this is to understand Warren Buffett's stock investing strategy. For thinking like Warren Buffett one has to be in his shoes, ie a person should think on the lines similar to how Warren Buffett use to think and analyze a stock before investing his money into it.
Following are few of the investing strategies which Warren Buffett implemented:
while taking his investment decisions. So be in Warren Buffett shoes and think in way he did on his way to become the greatest investor of the stock markets across the globe.
1. Stop listening to daily Stock market news : Legendary stock market investor Warren Buffett hardly switches on his TV for watching stock market forecasts. Presently there are lots and lots of business channels who provide stock market forecasts. These channels actually add a lot of confusion in the minds of investors, whereas they were programmed to remove it. Remember when you are into Warren buffet Shoes - Don't listen to market forecasts. Do your own analysis, make your own investment strategy and stick to it. Ignore stock market forecasts which tells stocks are set for going north or south. The whole logic of Warren Buffett investmenting technique is that always invest in stocks which are under valued but have lot of growth potential in future.
2. Don't be Emotional Investing fool: Emotions have no role to plat while investing your money into stock markets. When wearing Warren Buffett shoes one understands that all the investment decisions have to be rational, fundamentally strong, based on logical probabilities. So don't become a Emotional Fool of stock market. Just follow this Warren Buffett strategy diligently.
3. Master the art of Probabilities: As Warren Buffett says always calculate the probabilities effectively. Imagine playing cards and making all probabilities wrto your cards and then make a move. In stock markets these probabilities consist of economic conditions, sector growth aspect, quality of management of the company etc. Create your own investing formula from these probabilities and then invest in the stock which has highest probability of being a hit from the shortlisted lot. If you tend to be in Warren Buffett shoes then mastering the art of probability is a must before making investing decision.
4. Analyze business and benchmark: Stock price is only one aspect of a good investment decision. According to Warren Buffett if you invest in a company with strong fundamentals, strong management then stock price has to rise in future for sure. If management of a company is doing things which are needed for growing profitability and bottom-line growth then it's stock price is always heading north in future.
5. Think as owner of business: According to legendary inestor Warren Buffett one should always think as a part-owner of the company in which he has invested. He should not think as a investor but as a owner of the business. This would help in making key long-term investment decisions instead of just exiting a business when stock price rises meagerly.
6. Justified Diversification: Warren Buffett is very critical about over diversification or under diversification of your stock portfolio. One has to find a balance and diversify his money appropriately. Over diversification is as bad as under diversification of stock portfolio. One should make increase his investment gradually in companies which are doing good in his portfolio.
7. Long term is the best way of investing: Warren buffett only knows that the long term investments are best and would remain the best investments forever, never fall in trap of share trading. While it should be stock investing.
Hence these lucky 7 tips for being in Warren buffett shoes have to be followed for making big money in stock markets. So are you into Warren Buffett shoes yet? - Do leave your valued feedback/comment about my blog posts as it helps in improving the quality and reader experience of the blog. Leave a comment below, like my facebook page -LiveBombayStockExchange fb page, share it! you can also follow by email
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