Warren Buffett | Berkshire Hathaway Inc - 49 years (Image: Reuters)
Business magnate and CEO of Berkshire Hathaway, Warren Buffett, has turned 89 today.
Widely known as The Oracle Of Omaha, Buffett has accumulated a personal wealth of nearly $88.3 billion, backed by strong business acumen and traits such as frugality, patience and thirst for knowledge.
However, many people forget that Buffett is a product of humble beginnings. His investment journey began at a tender age of 11 and by 16 he was sitting at a cash pile of over $50,000, earning way more than this teachers.
Today, Buffett stands among the richest men in the world, and his journey is a testament to the value of the long-term view, as described by his favourite holding period which is "forever".
So let us commemorate his 89th birthday revisiting the lessons, tips and rules he gave us over the years, helping thousands in their investing journey:
Rule No 1> Never lose money in stock market. It means do your homework and research proper before investing in any stock.
Rule No 2> Don't forget Rule No 1.
Rule No 3> Price is what you pay and Value is what you get. Only buy something that you’d be perfectly happy to hold for long term, else come out of it immediately.
Rule 3 simply means that one should not fall a victim to daily market movements and should invest with a long term view.
Rule No 4> Never invest in a business you cannot understand. If you don't know about particular sector or company then never dare to invest on the basis of knowing risk or just for gambling.
Rule No 5> If a business does well, the stock eventually follows.
Rule No 6> It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.
One has to buy a strong company at correct price and never buy any company which gives you fair price but don't deliver it. Whenever the company is strong, the stock price always respect.
Rule No 7> Be patient
The stock market always returns to investor who have patience to hold their investment.
Rule No 8> Seize Great Opportunities and Load Up the Truck. In other words, buy quality stocks when there is sharp correction and sell when there is too much greed in the market which take indices or stocks up and up.
It means opportunities never come frequently. Whenever you find right opportunities in the falling market, grab it as much as it possible and sit tight.
Rule No 9> Dream big, be around with right people, keep your public image and reputation intact, be honest to others, do what you love etc
Always dream big with right approach and things which make you to help yourself to achieve your goal. Always do what you love to do and never hesitate.
Rule No 10> Give back to Society
Whenever you start earning, give back some of that earned money to the society which means being human and never be a selfish.