Rule no. 1: Never lose money.
Rule no. 2: Never forget rule number 1.
Let’s start with the basics! Why do we invest money in equity? If investing wasn’t meant to make profit, it wouldn’t make sense. Mr. Buffett doesn’t believe in formats and formulas for wealth creation; however, he only believes in investing smartly. He shares importance of sound knowledge and research while advising for long term investment. No one wants to lose money but very few want to know how to not lose money. The process of wealth creation in equity starts with a choice; wiser investors believe only in these rules of wealth creation.
Risk comes from not knowing what you are doing.
When you invest in equity, risk is inherent. Mr. Buffett, however, reinforces that you, as an investor must be aware of what you are doing. This is possible only with a sound knowledge. Buying businesses that you do not know of may lead you to be directionless. Rather, learn about the companies and their managements. Research is the basis of knowledge about companies you want to invest in. Understand how their business functions over the period of time and how does the company adapt to the situations. Buying stocks without knowing why you want to buy those stocks is a risk.
I like this site
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Thanks for the appreciation 🙂
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Awesome.
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Thanks
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AEWESOME AND VERY VERY USEFULL THANKS
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Thanks Raj 🙂
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Very knowledgeable sharing website. Well done Sir. Keep it up.
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Thanks parag 🙂
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very good blogs will surely follow
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Thanks jignesh 🙂
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kindly provide ur views on uv boards…
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Sorry not tracking it
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Thanks
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U are welcome
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thanks
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And long-term investment returns are tax free…appreciate your thinking
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Thanks 🙂
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Welcome 🙂
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Good site to follow.
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Thanks Paras 🙂
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