Warren Edward Buffett (81) is an American investor, industrialist and philanthropist. He is widely regarded as one of the most successful investor in the world and currently the third richest 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 shows 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 store.
While still in high school, he conducted several successful money-making idea: delivering newspapers, selling golfballs and brands, and detail cars, among them. Submitting your first income tax return in 1944, Buffett's $ 35 deduction for using your bike and look at his work route.
octogenarian interest in the stock market and investing is too dated to childhood, the days spent in the customer lounge regional stock brokerage office near her father's own brokerage company.
On a trip 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 Service itself, 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 the fear of losing money, they will not even take the time to examine 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 ...
for the first time I 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 shares which he later passed on to their grandchildren. (I can well remember the days when I sold my children to share in order to pay the bill before it was switched off electricity !!)
These shares bought for £ 1.30 now trading at 29.83 pounds. If dividends are reinvested, then you can imagine what 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 big profits in options trading, I invested a tidy sum in an intensive course with two world's top traders who I later realized that learning a profitable , but very risky strategy indeed. The course price (£ 3,500) would be a nice little 'investment pot' that we started then, but I knew that without the right knowledge, could easily become unstuck.
During the past 10 years I have made a lot of money in property, 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 is 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) was returned to me many times through the deals that i have after learning some of the secrets to making money in real estate and I regard the cost as one of the best investments I've made so far.
But what is it 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 the big door closes on my property business as moneyflow (not cash flow) began to dry up.
Having dipped my toe in 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've had little success with trading options, I knew it was risky, and although I invested £ 4,000 in a personal 'coach' ... on one occasion when I got stuck, my attempts to contact my mentor and I'm not panicking! Fortunately, I did not lose a lot of money ... just £ 100 ... but it was enough to scare me off for awhile.
During the conversation with other investors, 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 have gone to further their understanding of exactly how the labor market and have introduced my learning to others.
, but only to the labor market, how market makers make their money, they do 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 impact can have on share prices and profits.
Companies that trade on stock exchanges do in order to raise capital for research and development, expansion, etc., and by large corporations who 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 up. This is how money makes the world go around !!
Most investors buy shares in a company through a stockbroker. "Broker" makes its money by charging investors a fee when buying and selling shares on behalf of investors, regardless of 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, these assumptions create an environment very risky indeed.
Let me use a little analogy here. You would not dream of buying a car and set off on a long trip 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 so! 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 certainly have 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 the boat 'on the' hot tip "from a friend or article they read in the FT. In many cases, people will give their hard earned money (or sometimes inherited wealth) to the broker to invest on their behalf on the assumption that the broker knows all about the markets. WARNING: Stockbrokers are traders, and we all know that sellers are 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 the 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 investing, and anyone who follows Warren Buffett know that this is his strategy (buy and hold)
I think we can safely say that most investors have no idea about any of the above and yet they leave their financial well-being in the hands of someone who will probably never meet face to face, and no doubt will face wrath of family members if and when they lose money. Unfortunately, it is not uncommon for owners of substantial losses to commit suicide rather than admit error and ask for help or try again !!
, but as with any 'market', there are winners and gubitnici.Pobjednici know exactly when to and when 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 dividends will be paid and if they're smart, they'll reinvest those dividends to all of you (the power of compounding!). They choose quality companies with strong track record in emerging markets and those looking for signals that will warn them ahead of time, May that they need to get out of that 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 ensuring more profits than losses, a greater share of profits over time than if you just buy and hold.
big winners in the stock market, deal with its investment business. They are the objectives, timescales, trading plans, exit strategies, insurance against loss, fees and overheads, tax reduction and so on.
So, if you're considering investing in the stock market as a potential revenue stream - and I sincerely hope that you do - and then make sure you get the right information to the right ... training ... Before you start on your path to financial freedom.
stock market will be around for a long time ... prices will go down as well as up and will 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 these financial goldmine ... safely.
"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 for investment," Warren Buffet
