The poor are poor, the rich are rich

Chapter 123 4 Edward Buffett: The sooner you invest, the faster you get rich
Chapter 254 Edward Buffett: The sooner you invest, the faster you get rich
Regal Profile:

Name: Warren Edward Buffett

Born August 1930, 8 in Omaha, Nebraska, USA.

In 1941, at the age of 11, Buffett bought his first stock.

In 1947, Buffett entered the University of Pennsylvania to study finance and business management.

In 1949, Buffett was admitted to the Finance Department of Columbia University, where he studied under the famous investment theorist Benjamin?Graham.Under Graham, Buffett is like a fish in water.

In 1956, he returned to his hometown and founded Buffett Co., Ltd.

In 1964, Buffett's personal wealth reached 400 million U.S. dollars, and at this time the funds under his control had reached 2200 million U.S. dollars.

In 1965, the 35-year-old Buffett acquired a company called Berkshire?Hathaway's textile business.

At the end of 1994, it had developed into a Berkshire industrial kingdom with a value of 230 billion US dollars, from a spinning mill to Buffett's huge investment and financial group.Over the years, Buffett has consistently ranked among the top three on Forbes' annual list of the world's richest people.

In 1993, "Fortune" magazine estimated that Warren?How did Edward Buffett get so rich with $170 billion?His recipe is: save, invest, save, reinvest.

Buffett, who is recognized as the "God of Stock Investment", has been investing in the stock market since he was 11 years old. The reason why he can create huge wealth through investment and financial management today is entirely due to 60 years of time, slowly creating under the effect of compound interest. and he began to cultivate the experience of trial and error since he was a child, which has a key impact on his future investment skills.

Buffett is the greatest investor ever, he relied on the investment in the stock and foreign exchange market to become one of the richest people in the world.The value investing theory he advocated is popular all over the world.

"The first rule of investing is not to lose money; the second rule is never to forget the first rule." Buffett said so.Because if you invest 1 dollar and lose 50 cents, you only have half of the money left in your hands. Unless you have a 1965% return, you can go back to the starting point.Buffett's greatest achievement is that he went through three bear markets from 2006 to 3, and his Berkshire?Hathaway had only one year (2001) in which it lost money.

"Don't be fooled by the income", this is another factor for Buffett's success in investing in the stock market.He prefers to use return on equity to measure a company's profitability.Return on equity is the company's net income divided by shareholders' equity, it measures the company's profit as a percentage of shareholders' capital, and can more effectively reflect the company's profit growth.According to his value investing principles, the company's return on equity should be no less than 15%.Among the stocks of listed companies held by Buffett, the return on equity of Coca-Cola exceeds 30%, and that of American Express reaches 37%.

People call Buffett the "Oracle of Omaha" because he always consciously discerns whether the company has a good future and can continue to be successful in the next 25 years.One way to predict the future of a company is to calculate how much the company's expected future cash receipts are worth today.This is Warren?Edward Buffett's way of assessing a company's intrinsic value, and then he looks for companies that deviate significantly from that value to sell at a discount.

Most value investors are conservative by nature, but Buffett is not.His $620 billion invested in the stock market is concentrated in 45 stocks.His investment strategy is even more aggressive than that number.In his portfolio, the top 10 stocks account for 90% of the total investment.Morningstar's senior stock analyst Justin?Fuller said: "This is in line with Warren? Edward Buffett's investment philosophy. Don't hesitate, why not invest your money in your most optimistic investment object?"

If you change hands in the stock market, you may miss out on great opportunities.Buffett's principle is: don't change hands frequently, and don't sell until you have a good investment target.He often quotes the legendary baseball hitter Ted?Williams' words: "To be a good hitter, you have to have good balls to play." If there is no good investment, then he would rather hold cash.According to Morningstar, cash in Berkshire?Hathaway's investment allocation accounts for more than 18%, while most fund companies have only 4% in cash.

Buffett also has a habit of not doing unfamiliar stocks, so he will always only buy stocks in some traditional industries and never touch those high-tech stocks. Warren?Edward Buffett didn't buy it.At that time, everyone agreed that he had fallen behind, but looking back now, the dot-com bubble buried a group of crazy speculators. Buffett once again showed his prudent investment guru demeanor and became the biggest winner.

In addition, Buffett warns everyone not to fantasize about perfectionism in investment. It is inevitable and unpredictable for dealers to wash up the market. Don't delay the big market because of small interests, and don't lose the big direction because of small changes; look at the big direction to make big money, and look at the small direction Make a little money.It is impossible to have both fish and bear's paw in the stock market.

"The secret of investing is to be afraid when you see others greedy, and to be greedy when you see others fearful." Warren?Edward Buffett believes that in investment, we must overcome the human weakness of greed and fear, and adopt an investment strategy of what others abandon and what others take.

Buffett makes money by investing. As such an outstanding and successful investor, he is the greatest investor in the world. He is a very ordinary and ordinary person, but he has achieved the myth of the stock market. Created a wealth legend.

In real life, many young people always think that investment is a matter for middle-aged people or rich people. In fact, whether investment can make you rich has nothing to do with the amount of money, but the correlation with the length of time. But big.When people are facing retirement in middle age and have a little spare money in their hands, they only think of preparing for their financial resources after retirement. At this time, it is too late because the time is not long enough for compound interest to work.It takes at least 30 to [-] years to turn small money into big money. Therefore, the earlier the investment activities are, the better. The earlier you start investing, the longer the interest rolls over, and the sooner you will achieve the goal of getting rich.If time is an essential element of investing, then the best strategy for gaining time is "action is worse than heart".Invest now and get started today!

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