Hello friends, In today’s article we see warren Buffett’s rules of investing. Everyone knows this rule but no one follows the warren Buffett rule, because they don’t understand the logic of Warren Buffett’s rules of investing. So friends let’s understand the inner meaning of these rules.
What are Warren Buffett’s rules of Investing?
Investing is the art and we have to learn that art by practicing. For learning this art we have to follow the investing rules, let’s see what is the rules of investing? in one by one format.
Investing Rules:
Rule no. 1: Never lose money :
let’s understand this rule, losing money is like lose of money during an investment or business. This is the simple one meaning, but we also lose money by Investing properly with good company but our money does not grow i.e. also called as the losing money. (Warren Buffett rules of Investing?)
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let’s understand an example: one women’s name is Geeta.
she makes an investment in a Bank, business, and the Stock market. she gets the return after the 10 years of investment from the bank is about 7%, in business 10% and in Stock market 15% percentage from investment.
All of us see that there is a good return from the investment. But there She is the lost money in the bank because the Inflation rate in that 10 years is all about the average is 10%. (Warren Buffett rules of Investing?)
So They lose money in the Bank and the same value of money remains in the business investment. so That concept is called the MONEY ILLUSION. There are lots of people experts know about this stuff. But they don’t tell you about this stuff.
Rule no.2: Never forget rule no. 1 :
If you understand rule number one of investing, you have to remember your lifetime. this rule is not for only making money in the market, this rule is also helpful in saving money from spending.
The best way to save money is “If you Buy those things you do not need, you have sold things you need” by warren buffet. This quote means is bought the things that need you or save money that does not need you. This is all about Rule number 2. (Warren Buffett rules of Investing?)
so on themarathiinvestor.com website provide you the basic loopholes and knowledge to get make a profit from the stock market.
For more
Book Summary: One Up On Wall Street
Read more: The Intelligent Investor book
Read More: Common Stocks and Uncommon Profits
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