If we want to learn something we would do well learning it from the best.
As far as Equity investments are concerned there is no one better than Mr.Buffet.
It is not his Billions that made him great, but his character and his thought process that are instrumental in making those Billions.
Here is how he overcomes what fails most investors, in his own words.
- Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
- We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
- A public-opinion poll is no substitute for thought.
- Wide diversification is only required when investors do not understand what they are doing.
- Risk comes from not knowing what you’re doing.
- The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.
- There seems to be some perverse human characteristic that likes to make easy things difficult.
- It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
- You only have to do a very few things right in your life so long as you don’t do too many things wrong.
- Chains of habit are too light to be felt until they are too heavy to be broken.
- It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
Check whether we are practicing any of these and if not ask yourself this question, "Am I eligible to be rich"?
Happy Investing.
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