Before starting Mr Buffett is having one question for you “If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period?”
Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.
Now I invite you to tap into the financial wisdom of our elders along with me, and become financially wiser.
Hard work : All hard work bring a profit, but mere talk leads only to poverty.
Laziness : A sleeping lobster is carried away by the water current.
Earnings : Never depend on a single source of income. (At least make your Investments get you second earning)
Spending : If you buy things you don’t need, you’ll soon sell things you need.
Savings : Don’t save what is left after spending; Spend what is left after saving.
Borrowings : The borrower becomes the lender’s slave.
Accounting : It’s no use carrying an umbrella, if your shoes are leaking.
Auditing : Beware of little expenses; A small leak can sink a large ship.
Risk-taking : Never test the depth of the river with both feet. (Have an alternate plan ready)
Investment : Don’t put all your eggs in one basket.
10 Warren Buffett Quotes on Investing
1. You only have to do a very few things right in your life so long as you don’t do too many things wrong.
2. We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
3. We believe that according the name ‘investors’ to institutions that trade actively is like calling someone who repeatedly engages in one-night stands a ‘romantic.
4. Chains of habit are too light to be felt until they are too heavy to be broken.
5. If a business does well, the stock eventually follows.
6. Only when the tide goes out do you discover who’s been swimming naked.
7. In the business world, the rearview mirror is always clearer than the windshield.
8. Risk comes from not knowing what you’re doing.
9. Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
10. The investor of today does not profit from yesterday’s growth.
I’m certain that those who have already been practicing these principles remain financially healthy. I’m equally confident that those who resolve to start practicing these principles will quickly regain their financial health.
Let us become wiser and lead a happy, healthy, prosperous and peaceful life.Credit: I got this through email.