A little guidance never hurt anybody, especially when it comes to investing. Whether you’re a veteran or a new investor, you need to extensively research investment instruments before engaging with them. Many make the mistake of plunging into the deep end by dealing head-on with volatile markets, without comprehending the gravity of their actions.
You might opt for a money manager to keep up with your investments. Though, why engage with your investments through a medium? Some of the top investors in the world are readily offering financial advice!
If your investments have been performing poorly, then it’s time to upgrade your approach. Here are all the benefits you could enjoy by consciously following them!
Also Read: Passive Investing – Everything You Need to Know
“It’s far better to buy a wonderful company at a fair price
than buy a fair company at a wonderful price.”
Known as the “Oracle of Omaha”, Warren Buffet is an American businessman, widely recognised for his active philanthropy. He amassed over USD 60 billion by rising against dominant investment trends.
Buffet cautions fellow investors about bargain deals. You must judge a stock by its historical performance, and not by cheap prices alone. Remember, mediocre stocks will produce mediocre gains.
“Do you really like a particular stock?
Put 10% or so of your portfolio on it.
Make the idea count.
Good [investment] ideas should not be diversified away
into meaningless oblivion.”
The “King of Bonds”, Bill H. Gross is an American bond investor. He rose to popularity through his work as a portfolio manager for California’s pension fund, PIMCO.
Gross’s best advice to young investors is to diversify their portfolios. Diversification is the process of distributing your capital across various stocks. This ensures that part of your investments remains safe during unpredictable market crashes in certain sectors.
“I’m a long-termer.
I’m not a seller.”
A Suadi Arabian billionaire, Prince Waleed Bin Talal Al Saud is a businessman, investor, and a royal. He was rated among the top 100 most influential people in the world according to “Time 100” (2008).
This advice essentially emphasises the importance of remaining patient while investing. The prince has personally demonstrated the importance of holding onto your wealth, even during the most explosive market crashes.
“Know what you own,
And know why you own it”
The legendary former manager at Magellan Fund, Peter Lynch is a globally renowned investor. His long and successful tenure allowed him to retire at the age of 46 in 1990.
You must have a thorough, or at least moderate, knowledge of the companies you choose to invest in. Lynch believes that a lack of understanding between you and the stocks purchased can be the downfall of your investment strategy.
“But investing isn’t about beating others at their game.
It’s about controlling yourself at your own game.”
The father of Value Investing and the man who inspired Warren Buffet – Benjamin Graham is a force in the investing world to reckon with.
Graham actively exercised the practice of purchasing stocks at their lowest and selling at their peak. He advises investors to learn to ride the waves of volatility by wisely investing in companies with low debt and above-average profits.
Don’t ignore these insightful nuggets of knowledge! Just following them could make a world of difference to your investment plan.