5 Investing Principles of Warren Buffett

5 Investing Principles of Warren Buffett

Here is a short summary of five investing principles of Warren Buffett who has become famous as a successful investor and many people want to learn how he did it. If you want to start investing like Warren Buffet, here are five investing principles of Warren Buffett to build your foundation:

1️⃣ Never Lose Money: Investing is not like gambling or short term trading where you are in for quick cash, having to risk (a lot of) money to make some.

2️⃣ Think Long Term: Complementing the first principle as investors we want to learn to think long term. It’s all about doing our research upfront and let compound interest play its magic.

3️⃣ Buy The Company: Do your research beforehand and base your investment decision on the actual value of the companies you plan to invest in. The price is what you pay and the value is what you get.

4️⃣ Buy Advantages: There are companies that stand out and others that don’t. We want to stick with the leaders.

5️⃣ Have Cash At Hand: Did you know that „cash“ is also a position in your portfolio? Make sure that you always leave some cash in the bank so you won’t have to pass on opportunities.

This was the short summary of the 5 investing principles of Warren Buffett. You can watch the full video here: