Warren Buffett Ten Rules

1. Plough back your profit. Once you have made a successful investment and profits are flowing in then that’s not the time to go celebrating and squandering it Warren says an investor should re-invest their profits and have their monies work for them to bring other.
2. Be keen on detail. Before signing to any contractual agreement or business deal read very carefully the terms and conditions because the devil is in the detail and if it is hard to understand the various terminology you can involve a lawyer or someone who has been in that industry to give some advice.
3. Consider small expenses. These are those expenses that have a low monetary value and don’t seem to have much impact on the business Warren Buffet says these small expenses are usually recurrent and if they are not checked they can lead to wastage.
4. Persistence. If you set out to do a venture go for it with all you have without quitting and with tenacity and ingenuity at the end of the day you will get it.
5. Know when to quit. This would sound like an oxymoron considering the above statement, however, as human beings, we all have what is commonly known as the sixth-sense or intuition if your portfolio brings nothing but loss and the indication shows a chance of the same trend then its only right to terminate.
6. Limit on borrowing. Debt is good when it is put in check. Warren advice individuals who are looking to borrow to negotiate with their creditors on the amount they are to pay back this would ensure that the amount to be paid back is manageable.
7. Stand out. Do not feel pressure to conform to the norm, doing what other investors are doing does not turn out to be a profitable idea be willing to be different and follow your own path to success.
8. Assess the risk. In economics, there are different parameters to measure the riskiness of a venture use them to analyze the risk level compared to the expected profitability.
9. Give back. Warren believes success is measured by how many lives you have touched.
10. Research. Knowledge is power.

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