HOW TO BECOME WARREN BUFFET OF STOCK MARKET ?

“I ALWAYS KNEW I WAS GOING TO BE RICH”

-BY WARREN BUFFET

There are various techniques which is used by WARREN BUFFET in there stock market carrier in wall street. But i’m gonna tell you about the basic fundamentals which warren buffet applied in there investing carrier which made him very renowned investor in the world.

WARREN BUFFET having net worth of 88.9 Billion US DOLLARS, which make him world’s fourth wealthiest person on the EARTH.

We all know in our country stock market is just like a taboo for many people or , many people’s exaggerate the things which in reality doesn’t exist ,this type of things known as stock market phobia.

NOW I’M HERE TO REMOVE YOUR FEAR FROM STOCK MARKET BY UNDERSTANDING 5 TECHNIQUES OF WARREN BUFFET:–

1. BUY LOW AND SELL HIGH APPROACH: WARREN BUFFET always said that buy the stocks in the stock market when there price is lower than the face value (issue price) which means when there is fall in the stock market at that time people have to buy the stocks and when there is price high or there is rise in the market at that time people can sell there stocks and earn profit from it.Now, this rule is applied after understanding the company’s financial statement(balance sheet, cash flow, profit and loss account),these all financial statement gives you clear picture about the company’s growth and profit trend.After, clearly analyses financial position now the time came where you can buy a stock in the financial market.
2. UNDERSTANDING THE FINANCIAL POSITION OF STOCKS: WARREN BUFFET said this in there interview “if a person doesn’t understand the financial position of company’s stock ,then it just like a gambler who don’t know whether he going to be a winner or not” , this statement clearly says that at least a person having basic knowledge of financial statement before going to invest in the stock market.
3. PATIENCE IS THE KEY OF STOCK MARKET : WARREN BUFFET always applied this technique in stock market. He always encourage to those people who going to invest in stock market and don’t think about there stock’s ups and downs in the market because a renowned investor(warren buffet) think that he invested in the right business model which will definitely grow in the upcoming future.So, he convinced investors that have some patience “every tree takes some time to give delicious fruits”, similarly this technique is also applicable in stock market.
4. BUSINESS MODEL OF A COMPANY: WARREN BUFFET give more emphasizes on a business model of a company because he believes that “if a person is kindhearted then there cruelness not justify that who the type of person is this?”.This same philosophy is applied in the stock market if a company having good workforce and great entrepreneurial skills then they may definitely grow there business in long run.DO YOU KNOW? WARREN BUFFET hold a stock of PAYTM before it going to be popular in INDIA , he only saw the business model of PAYTM and now we all see how this net banking company stands in 2020 and in upcoming future. So, before investing in the stock market you have to only see the business model of a company not the current situation of stock market.
5. ONLY INVESTING AT RIGHT TIME: WARREN BUFFET believe that investing in stock market is the game of right time, how? . Definitely this question arises in your mind how it will be a game of right time? Now, i’m going to give you the answer , suppose you going to the market and buy a scooter at Rs. 50,000 in 2020 and in 2021 the price of same scooter with same feature is of Rs. 40,000. NOW, this gradual decrease in the value of scooter from high to low is a normal behavior of stock market.From this example you understand the working of market fluctuations , now you can replace this scooter with the stock of any company ,will you buy a stock with the high price in 2020? or you will wait for 2021 to buy a same stock with low price and earn a profit of Rs. 10,000 by buying a stock , it’s totally up to you how will you use your common sense in stock market.

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CONCLUSIONS:

• After reading the blog you came to understand the thought process of warren buffet and the key to there adorable success.
• Another point which is highlighted in this blog is that stock market is a place where your investment never be worthless in long run, it definitely increase your existing wealth.
• AT last this blog convey the message that be a risk taker not a opportunity loser.

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