Warren Buffett is undoubtedly the star investor of all time and is rightfully regarded as the “Oracle of Omaha”. At heart, Buffett is a value investor and he shares a lot of tactical insights when taking part in the shareholders meeting or writing an annual letter to the shareholders. His portfolio is available online which does aptly reflect the fact that he has a certain investment philosophy which has helped him achieve so much. If you wish to invest and make it big, it is always better to learn from the best, isn’t it? Here are the 5 amazing tips from Warren Buffett-
Cash is the biggest deal
Warren Buffett believes that investors should always keep a lot of cash in their hands. The reason is simple- the cash in hand will ensure that the investor can withstand financial losses and at the same time invest in worthy opportunities without delaying any acquisitions. This is great advice even for personal finance because at the time of an emergency, having cash in hand is the need of the hour. Try this!
Fear the favored
Buffett rightfully says that you should stay away from those stocks which are bought by everyone. These stocks are overvalued which is why you should fear them rather than invest in them. On the other hand, if you are chasing stocks which not much favored, it can be great for you. Check the fundamentals and potentials of the stock and invest in them to make it big.
Love the dividends
Dividends are the love for value investors throughout the world. Warren Buffett is extremely keen on the system of dividends and he believes that it shows that the company is in good shape enough to pay out dividends to the stockholders. There is a special section of stocks which are known as Dividend Aristocrats, they have doubled and multiplied by dividend in the last 25 years.
Love the undervalued
Buffett suggests that you should always buy undervalued stocks based on the company’s intrinsic values. Check out the company’s fundamentals at a minimum of 5 years, operating margin and equity to understand whether it is good low-value stock or not. If you compare and find that it is an undervalued company, you should surely invest in its stocks as it will offer you greater ROI over time.
Buy and hold
Buffett prefers to hold his stocks for a long time before selling them off. He suggests the same to every fellow investor because the gain over a long period is a lot more than the short ones. Do not trade, rather invest and wait. Patience pays a lot more than short span stock holding!