Warren Buffett's 5 Investing Principle Every Investor Should Know
Warren Buffett is one of the most successful investor in the World. Here's a look at his 5 investing principle to build wealth.
“The first rule of investing is don't lose money. The second rule is don't forget the first rule. And that's all there is to it.” This quote by Warren Buffett sums up the core of his investment philosophy marking his strong aversion to losses.
"My wealth has come from a combination of living in America, some licky genes, and compound interest," Buffett has famously said.
Buffett bought into several companies that turned out to be compounding machines for very long periods. In 1988, Warren Buffett Said, "Our favorite holding period is forever."
Buffett has often referred to the margin of safety as the key factor in the success of stock investing.
One of Buffett's rules for success is that he never buys stock in a company unless he can write down the reasons he's willing to pay a specific price per share.
The idea behind investing is to earn interest, not to give it away. This is the basis of one of Buffett's rules of life. It's not focused solely on investing.