Warren Edward Buffett (81) is an American investor, industrialist and philanthropist. He is widely regarded as one of the most successful investors in the world and is currently the third richest person in the world !!
If you would like to buy just one share of stock in his company (Berkshire Hathaway), it will set you back a cool $ 119,005 today!
Even as a child, Buffett displayed an interest in making and saving money. He went from door to door selling gum, soda, or weekly. For a time he worked in his grandfather's shop.
While still in high school, he carried out several successful money-making idea: delivering newspapers, selling golfballs and brands, and detail a car, among them. Submitting your first income tax return in 1944, Buffett has $ 35 allowance to use their bike and look at his paper route.
octogenarian interest in the stock market and investing is too dated to childhood, the days spent in the customer lounge of regional stock brokerage office near his father's own brokerage company.
On his way to New York at the age of ten, he made a point to visit the New York Stock Exchange (NYSE). At the age of 11, he purchased three shares of Cities Services for themselves, and 3 for his sister.
While in high school has invested in a company owned by his father and bought a farm worked by a tenant farmer. By the time he finished college, Buffett has raised more than $ 90,000 in savings.
His wealth is estimated at $ 42.2 billion today!
So why do so many people feel that the stock market is risky and feel so afraid of losing money, they will not even take the time to explore this very lucrative money making opportunity?
I guess the answer to that question lies in the perception of readers, but here is my take on it ...
When I first became aware of buying stocks and shares in November 1984 when more than 50% of British Telecom shares were sold to the general public. My mother was a wise one of the first in line to get some stock that was later passed on to their grandchildren. (I well remember the day I sold my children to share in order to pay the bill before it was turned off electricity !!)
These shares are bought for £ 1.30 now trading at 29.83 pounds. If dividends are reinvested, then you can imagine what it would be a tidy profit on the disposal of my sons inheritance pot today !!
I was first attracted to Market Investing After attending Tony Robbins Wealth Mastery event in 2005 and, realizing the potential for large profits through options trading, I invested a tidy sum in an intensive course with two world's top retailers, which I later realized that teaching is a very lucrative , but very risky strategy indeed. The course price (£ 3500) would be a nice little 'investment pot' that we started back then, but I knew that without the right knowledge, could easily become unstuck.
During the past 10 years I've made a lot of money in real estate, a large part of which came after I invested in a course conducted by well-known property training company whose top sneakers, the Secret Millionaire Gill Fielding and Kevin Green, and very well-known motivational speaker and property expert, dr Rohan Weerasinghe, taught me a lot more investment property than what I already znao.Trošak the course (£ 20,000) returned to me many times through the deals that i have after learning some of the secrets of making money in real estate and I regard that cost as one of the best investments I've made so far.
But what is this got to do with the stock market I hear you say! Well ... as rumors began to filter through some problems in the banking sector in early 2008, I quickly realized that the real estate market is about to change dramatically. That would be fine, I was in the middle of negotiations with major Scottish banks, which are about to provide funds for multi-million pound property development deal that would put me in a very comfortable position financially, that they refused to work!
This is a "back to the drawing board" for me, because I realized that a large door closes on my property business as moneyflow (not cash flow) began to dry out.
Having dipped my toe into the water with the stock back in 2005, I knew that there was potential to make money in this market, but I was nervous. Although I have experienced little success with options trading, I knew it was risky, and even though I invested £ 4000 in a personal 'coach' ... on one occasion when I got stuck, my attempts to contact my mentor and I did not panic! Fortunately, I did lose a lot of money ... just £ 100 ... but it was enough to scare me off for awhile.
During a conversation with another investor, it became clear that I could use the same strategy I had used the property to make good consistent profits in the stock market ... Without risk, and it would not have much capital to get started !!
As with any investment strategy, it pays to get good advice and that's what I did in 2009. Since then I went on to further their understanding of exactly how the labor market and have introduced my learning with others.
But just how markets work, how market makers make their money, which does not effect a sudden change in world politics, cycle time, natural disasters, major accidents (oil spills BP) ... How do these things affect the market, and what immediate and long-term effects can have on stock prices and profits.
Companies that trade on the stock market do in order to raise capital for research and development, expansion, etc., and by large corporations that float their companies on stock exchanges around the world, the need for investment money from the public in order to grow. In return, they offer the investor shares in the company's profits, which, as we all know, can go down as above. This is how money makes the world go around !!
Most investors buy shares in the company through a stockbroker. 'Broker' makes its money by charging a fee when investors buy and sell shares on behalf of investors, whether the investor makes profits or not.
It seems that many investors assume that the broker knows all about the stock market, and since they also assume that stock prices will always go up, those conditions create a very risky environment indeed.
Let me use a little analogy here. You would not dream of buying a car and set off on a long journey without first learned to drive safely and passing the driving test, is not it? In fact, it would be illegal in this country to do! After investing in a car that is depreciating asset, you will be familiar with this vehicle. You May not be a mechanic, but you will need to visit a few times during the life of ownership so the car is working properly.
And yet, here is what happens in the stock market today ... investors will not take a boat 'to' hot tip "from a friend or an article they read in the FT. In many cases, people will give their hard earned money (or sometimes inherited wealth) for the broker to invest on their behalf on the assumption that the broker knows all about the markets. WARNING: Stockbrokers are salesmen, and we all know that merchants have targets to meet, so I think that the broker will have their interests at heart
So, with little knowledge and little or no experience, you can suddenly find himself the proud owner of share certificates ... And then what? Do you have a plan? When is the right time to buy? When is the right time to sell? Can you trade opportunities with selected stakeholders? When you cash in your certificate? What happens when a stock moves down? Do you know what will happen to investments if the company goes out of business? To buy low and sell high is a common intention with the stock market investments, and anyone who follows Warren Buffet knows that this is his strategy (buy and hold)
I think I can safely say that most investors have no idea about any of the above, yet they leave their financial well-being in the hands of someone that will probably never meet face to face, without a doubt will be confronted with anger from family members if and when they are losing money. Unfortunately, it is not uncommon for owners of substantial losses to commit suicide rather than admit the mistake and seek help or try again !!
But as with any 'market', there are winners and gubitnici.Pobjednici know exactly when and where to get out. They know which companies are the safest to invest in and they get to know the heart of the company. They know how often the dividend will be paid and if they're smart, they will reinvest those dividends with all profits (the power of compounding!). They chose a good quality companies that have a strong track record in emerging markets and those looking for signals that will warn them ahead of time, that they May need to get out of the stock or find a way to protect your investment. They will generally remain with the company or companies for several years and there will be lots of small profit as prices fluctuate, thus providing more gains than losses and a greater share of profits over time than if you just buy and hold.
big winners in the stock market, treat their investment business. Those are the objectives, timescales, trading plans, exit strategies, insurance losses, fees and overheads, tax mitigation and so on.
So if you're considering stock investment as a potential revenue stream - and I sincerely hope that you do - then make sure you get the right information ... the right training ... Before you start on your journey to financial freedom.
stock market will be around for a long time ... prices will go down as well as up and it will even go sideways for a time .. and you can take advantage of the market, in whatever direction it goes. There is nothing to fear as long as you know what drives the market and teach you how to maneuver your way through this financial goldmine ... for sure.
"The basic idea of investing are to look at stocks as business, using market fluctuations to your advantage, and seek a margin of safety. A hundred years from now, they will still be the foundation of investment," Warren Buffet
