Eight Principles from Investment Guru Warren Buffett

1. Create a Clear Personal Investment Plan

It is very important to develop a coherent investment plan that will serve as a basis for further action. It is mandatory, regardless of the volume of your investments. It perfectly identifies false expectations. Write your plan on paper and refer to it when planning and forecasting investments. Do not forget to set a specific goal!

2. Flexibility Is the Basis of Success

There is a possibility that not everything will work out, but after overcoming the obstacles, there will be success. Flexibility helps you look at the situation more rationally. Market processes and the economy are volatile, so you need to be able to adapt quickly. Quickly adjust your financial plan and current investment portfolio to reflect changes in external circumstances.

3. Choose a Realm You Understand

Analyze your abilities, knowledge, and skills. Think about your interests and how much effort, time, and money you are ready to invest in the cause. For example, if you have been engaged in agriculture all your life, then you should not invest in IT. It is necessary to understand the sphere from the inside out.

4. Carry Out a Financial Analysis of Key Figures

Before buying shares or investing in an enterprise, carefully analyze the main financial indicators. Look at them dynamically and see how they have changed. This analysis will help you assess risks, opportunities, and problems.

5. Learn About the Company’s Management

Business development depends on management. Study the available data on those at the helm. This information will help you create a picture of the further development for the business.

6. Explore the Investment Object

Before you invest in a project, you need to analyze the product of interest and the services that the company provides. Analyze the project from different perspectives. What share does it have in the market? Who is its main competitor? What are the prospects for development?

7. Ignore Market Dynamics

If you are interested in a certain product or service, then don’t look at the development of market processes and the entire economy. The economy as a whole may fall, but one particular segment may be growing. It’s not always the case, but pay attention to it!

8. Invest Your Money Carefully

Do not rush to part with your money if you cannot find a suitable investment. Hold on to your finances until you find a product you’re sure of.

#BNTX #BintexFutures