When Warren Buffett speaks, everyone listens. Considered as the world’s greatest investor alive, he never shies away from offering advice to fellow investors. Over the years, he has amassed a personal fortune of $72 billion and his company, Berkshire Hathaway, is valued at $212 billion. Here are a few pearls of investing wisdom offered by Buffett over the years:
Money may not buy happiness, but it can certainly help you buy things that make you happy. And that’s why there’s no end to the need for money. One way of getting wealthy is by saving and investing in plenty. But how do you decide if you have saved and invested enough?
Here are five measures you can use for this purpose:
Asset allocation is a strategy by which an investor or investment advisor manages a portfolio in certain pattern and maintains that percentages (%) of allocation in desired asset classes and reviews it at intervals and reallocates once the decided allocation changes. The asset classes includes stocks, bonds, mutual funds, real estate, gold, other commodities, etc.
“In investing, what is comfortable is rarely profitable”.
This statement explains investments in a beautiful manner.
To be successful in investments, you need to venture a little out of your comfort zone. Yes, it is true that you do not always have to invest in high-risk investments that offer a world of uncertainty. But some risk is exactly what you need to reap excellent benefits!