6 Investing Lessons by The Legend 'Warren Buffet'
BENGALURU: Warren Edward Buffett is at the zenith when it comes to the world of investing. He is the most successful investor of the 20th century. He has devised a number of investing lessons and here are a few.
1. Price Is What You Pay But Value Is What You will Get
If someone has bought a Bugatti Veyron for 3 crore and if the interiors of the car are not up to its mark then for sure it is going to be a bad investment. Same principle follows in the world of investment. As Buffett rightly said, “One can buy stocks when the price you have to pay for the stock is less than the intrinsic value of it”, according to Scripbox. The whitest amongst all is the one who puts his money in stock markets at a precise time, will be able to extract every last penny of his profit from that investment.
2. It’s better to buy a Brand company at a Fair Price Than An Adequate Company At A Cheaper price.
It’s always recommended that, one should buy shares of a brand company rather than the shares of a company which is of cheap quality because in the long run, you will be able to get returns that you have invested. Buffett says, average companies give much less returns over a long term compared to brand companies. Invest whenever you have an adequate capital and hold on to it for a long term.