INVESTMENT LESSONS FROM WARREN BUFFET.

If you plan on building your wealth, you should plan on investing your money.

To invest is to allocate money in the expectation of some benefit in the future. Investing allows you to put your money to work earning you strong rates of return.

If you are about to make some investment decision, we’ve put together some key investment tips from Warren Buffet, one of the richest men in the world.

1.     Always Stay Rational.

Never lose money. Stay rational and stick to your homework when researching businesses in which to invest. Focus on your investment goals and make decisions without sentiments.

2.     High Returns with Low Risk is the Key

Risk comes from not knowing what you are doing. Never invest in a business you cannot understand.  It is important to ensure you are taking the right risks to protect against the chance of any devastating loss.

3.     Invest for the Long Term

Only invest in something that you’d be perfectly happy to not worry about for a long time.

Long term investments have historically proven to generate more wealth than short term investments. They help you to fulfill goals, teach you about patience, money management & discipline

4.     Patience is Key

Although the best investors understand the importance of patience, it is one of the most difficult skills to learn when it comes to investing. Your return from investment in market will be fruitful only after a period of time. Don’t be impatient when it comes to your money.

5.     Invest in Companies That Match Your Values

what one person feels is ethical, another might think is wrong. So we're all on our own in deciding the role our values play in where we put our money. Do your research and invest your assets in the companies that match your values.

In summary, if you don’t invest, you are missing out on opportunities to increase your financial worth. Investing is relatively painless, and the rewards are plentiful. It can preserve your spending power in the years to come.

Put your assets to work for you by investing. If you invest wisely, the potential to gain more is higher than if you never invest.

Warren Buffet simply puts, “Never depend on a single income, make an investment to create a second source.”

What are you waiting for?