Warren Buffett Investing Advice

The Warren Buffett investing advice is to buy stocks at a low price and have the expectation that will make a profit. Therefore, try to find safer stocks, using guiding principles, invest in what you feel comfortable.

In fact, it is important to buy stocks in a company with a long-term growth. Consequently, look for important financial ratios with companies with high returns, businesses with quality and reasonable prices. Your goal is to get high returns on invested capital.

However, Warren Buffett has several sayings and tips, time is the friend of the wonderful business, and it is better to buy a company at a fair price.

Consequently, he has said, if you own a stock and you have done it correctly, the time to sell is almost never. His own mentality about investing and buying or selling has been the same, buy and hold.

For that reason, only quality businesses can earn you high returns and increased their value, when you have the patience to wait. Therefore, his advice is to listen to those you can trust, and focuses only on a longer-term investment.

The stock market is unpredictable and you need to understand the difference between price and value. Indeed, it is important to be realistic and to have expectations, according to your own knowledge and not others.

He recommends investing in companies with honest management, attractive purchase price and first of all, that you are familiar with the Industry. He believes that diversification makes no sense, and it is a protection against ignorance.

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