According to Billionaire Warren Buffett, the key to a successful investor is experience. However, many people who are engaging in business activities today are the young generation. So, what should happen to these young people who do not have experience? The good thing about business today is that many people have experienced from which the young people can learn from. Investors like Warren Buffett have experience of over 5 decades and are best suited to help the young people make the right investment decisions. Buffett is generous with information regarding investment. He takes time to advise the young generation on some of the decisions they should make.
Warren Buffett believes diversification is for people who do not know a lot about investments. Confident investors should have faith in the analysis made if one is to buy a stock let it be for a long term. Many investors who diversify their portfolios are those who do not believe in their analysis. Diversify makes one lose focus on individual investments. Diversification is not something that Warren Buffett encourages. It is not suitable for long-term investors. Buffett strategy involves making stocks come to his levels and then take full advantage of them.
Warren Buffett advises the young generation to focus on the development of their abilities. They should focus on growing their abilities to analyses market and make confident decisions. A young person should put his or her skills in a career as well. Not every person will make enough money from the stock markets. So, supplementing investment with another career is advisable.
Building up self-confidence is something else that should be encouraged. The hardest part of investments is confident of own analysis. Getting rid of fear should be the primary focus of young investors who are yet to become used to investments. Confidence will make one stick with the initial analysis and not being swayed by the markets.