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Business motivation

5 Top Investment Tips From Warren Buffett For Every Investor

5 Top Investment Tips From Warren Buffett For Every Investor
5 Top Investment Tips From Warren Buffett For Every Investor

Warren Buffett, even at the age of 92 years is famous for his smart investments along with his sense of humor in investing in the stock market. But even in his old age, his jokes continue to amuse people. Over the years, Buffett has invested in many profit-making behemoths, helping him and his clients generate record income.

Here are Warren Buffett’s top five investment tips for every investor:

1. Do not Put All Eggs in One Basket

When it comes to investment, Warren Buffett suggests that one should have a diverse portfolio. Never invest all your money in one scheme. Whether you are a beginner or a seasoned investor, diversification is one of the most vital strategies to invest in the industry because it mitigates the chance of losses. The idea behind this technique is to not put all your money in one place.

Diversification promotes spreading capital in different stocks across various industries. This squares the losses that you incur in one stock with the profits that you make in others. You can also watch this informative video on trading by Dr. Vivek Bindra- the best business coach in India.

2. Believe in Long Term Investing

If you are thinking about investing in stocks, think about owning them for 10 years. One should only invest in the stocks of a company if its products or services could be relevant in the next ten years. Buffett believes that going that extra mile before picking a stock would always pay off in the long term.

3. Create Multiple Income Sources

Warren Buffett suggests that if you want to create wealth, never depend on a single income. Always make investments to create a second or third source of income. Having multiple sources of income helps you to generate passive income and secure your finances for the future.

4. Seize the Opportunity

Warren Buffett says that opportunities come without notice.  So when it knocks at the door you should seize it and use it decisively. When stock prices are significantly low, investing heavily might be a good idea. Good prices may not come along again soon. He says, “When it rains gold, put out the bucket, not the thimble.”

Want to know how Warren Buffett became the king of trading? Watch his case study here-

5. Save Before Spending

If you spend more than what you earn, you will end up with a negative bank account. If you want to create wealth, you need to have a budget in place. Before spending, ask yourself, whether you need that expensive bag that you have been eyeing for months. Take out a fixed amount every month for the saving purpose and then whatever is left you can spend.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses. To know more, visit: www.badabusiness.com

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Business motivation Strategy

7 Important Tips For People Investing In Stock Market For The First Time!

7 Important Tips For People Investing In Stock Market For The First Time!
7 Important Tips For People Investing In Stock Market For The First Time!

The stock market is a fascinating world, and venturing inside it is like a gamble for everyone. Where the fluctuating highs and lows of the market can seem like a playground for professional traders, it could be frustrating for someone who has just entered the world of the share market.

The uncertainty and unpredictability of the market can be frustrating for a first-time investor. However, having adequate knowledge and the required analysis of the stock market can help you receive long-term returns. You can also hire the best business coach in India to get information about stocks, equity, and the share market.

In the beginning, the fear of putting your money in the market might make you change your mind, but keeping yourself patient and calm can help you focus on long-term returns on your investment.

To know everything about Share Market from the scratch, watch

So what are those 7 things that every new investor should keep in mind before putting their money in the market? Let`s find out:

  1. Invest with a Game Plan

“Why am I investing, and what is my goal?”- this is something every individual should ask himself or herself before making their first investment. Having a game plan is necessary and an essential step in the process. Having a clear objective in your mind helps you to achieve goals.

For instance, if you are planning to own a house in the future and your goal is to save money for that in 10 years, you should figure out how much you will need to invest monthly to reach your goal.

  1. Diverse Portfolio

Investing is not just about putting your money in the stock market. Trying to get heavy returns by putting all your money into a few hot stocks will fail in the long run. Despite all the hype that is being created around stock picking, the path to long-term wealth creation is asset allocation by building a diverse portfolio. A portfolio with diverse allocation includes stocks, bonds, and a range of other asset classes.

  1. Stick to Single Strategy

If you would Google for investment strategies, you will be presented with tens of thousands of results. However, it can be overwhelming and create confusion for someone who is exploring the world of the stock market for the first time. Hence, the best way is to focus on a single strategy and become proficient at it. Eventually, you will start to make money over time.

  1. Develop Long-term Thinking

The world of the share market often sells fear or greed. But, it is essential to keep in mind that when it comes to the stock market or trading, the short-term approach does not give fruitful results. Hence, always think “long-term” when it comes to the trading world. Why? It is like a roller-coaster ride of a lifetime that has the potential for outstanding long-term personal benefit.

Do not get sold for the idea of “get rich quick” or the day-to-day emotions. Set a clear goal, and let the stock market do what it is meant to do.

  1. Buy only when you understand it!

In 2017, Bitcoin was the hottest thing to put money on- and more often than not, there will be a particular investment that gets a lot of attention. However, you must invest money in it only if you understand the nitty-gritty of it.

New investors often have this idea of “get rich quick” and end up losing more money. Staying away from that mindset will help you save your money. Buy a stock only if you know the product or service. Otherwise, you can also put your money in a low expense stock, or a mutual fund can be a good start.

  1. Invest in Balanced Funds Systematically

Ask anyone who has been trading in the stock market and they will tell you how a balanced approach over time will always provide growth. This has made so many people`s retirement extremely comfortable.

However, you will not find many takers of this golden approach. The major reason behind it is the overheard stock tip. It may yield fascinating results on rare occasions, but more often than not the money is lost quickly. To avoid risk, it is highly recommended to put your money in balance funds systematically over time.

  1. Practice Patience

The world of shares and the stock market can be overwhelming. If this is the first time you are trying to explore the dynamics of it, you will have to understand that it`s a long-term game. You will have the time to ride the fluctuating waves and the flexibility to diversify your risk. Do not make any rash decisions and take time to discuss the pros and cons with your advisor. They might charge you a little, but they will educate you on what exactly is going on in the market.

So take your time and learn from them as it will help you make an informed decision.

Stocks move up and down, way too quickly. You might feel your heart skipping a beat with every high and low of the stock you have put your money on. However, do not panic and sell everything, if you see a 2% drop in your portfolio. Constant buying and selling will lower your returns in the long run.

Always choose stocks that you truly believe in by analyzing their past performance. Buy and hold them. It will yield long-term returns.

Are you new to the world of the share and stock market? Then you can take our business training programs where you will gain in-depth knowledge about share and the stock market in a very engaging and easy-to-understand format.

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Webinar

How To Create Wealth Using Asset Allocation?

How To Create Wealth Using Asset Allocation?
How To Create Wealth Using Asset Allocation?

Simran has just landed her first job. She is excited about her new job, but also keen to save and invest in her future. However, just like many others, she is confused about where she should start.

Some of her friends are trading in the stock market while others are thinking about invest in PPF. But, Simran is way too worried and is pondering over her investment options as she does not want to take too much risk with her hard-earned money.

Though bank deposits are a safer option, the fixed return is not appealing to her. When it comes to investing in a mutual fund, she is not sure which mutual fund she should buy and invest in, as there are plenty of choices.

So how should she make her investment choices, so that over a while she can save and build wealth too?

Does Simran`s story sound familiar to your own? Don`t worry! You are not alone!

Only 4% of Indians prefer to invest in stocks, and exchanges along with many scams are to be blamed for keeping them away from equity markets.

“We have a market that is not safe for investors to a large extent”, says Ashish Kumar Chauhan, CEO & Managing Director of Bombay Stock Exchange.

And with thousands of bonds, stocks, and mutual funds to choose from, making the right decision to invest can confuse even the most seasoned investor. However, if you do not take the leverage of it, you will undermine your own ability to build wealth and secure financial life for retirement.

So what is the first step towards building wealth? Instead of selecting stocks, begin by deciding what percentage of stocks, bonds, and mutual funds you want to hold. This process is known as asset allocation.

What Is Asset Allocation?

Asset Allocation is a brilliant investment technique. It involves creating a portfolio that aims to balance risk by dividing assets into major categories like bonds, cash, real estate, stocks, and derivatives.

Each asset class has distinct levels of return and risk. Hence, each will behave differently over time. Where one asset category can increase in value, the other might not give that much return. Though some see this technique to get mediocre returns, it is the best protection plan for people like Simran, who don’t want to take much risk.

However, there is no single or set formula for asset allocation that guarantees good returns. And if there were, it would be difficult for us to explain it here.

We have outlined 3 essential points that you must consider when thinking about asset allocation:

  1. Risk against Return

Asset allocation is all about the risk-return tradeoff. It forms the basis of the entire technique. Everyone wants the highest possible return, but it is more than just choosing high-potential assets.  Moreover, it isn`t always the best answer!

The financial crisis of 1929, 1981, 1987, and 2007 to 2009 are the best examples of how investing only in stocks with the highest potential returns is not the most prudent plan of action. Every year your returns are going to be beaten by another investor, pension plan, and mutual fund, etc.

The ability to weigh the relationship between risk and return is what makes an investor successful.

  1. Timing is Crucial

For every 10 years, you delay saving for your long-term future goals, you have to save three times as much every month to catch up. Starting early like Simran allows you to take advantage of compounding and the time value of money. It also gives you a buffer for making high-risk investments, namely stocks.

  1. Know your Goals!

Whether it is Simran or any one of us who is working, we all have goals! Goals that we want to pursue and fulfill. Be it owing to an apartment, a car, international vacation, or building a startup, you must think about an asset allocation plan with the right mix.

For long-term goals, you do not have to worry about fluctuations in the short market. However, for short-term goals, you may need to tilt your asset allocation to fixed-income investments that have less risk.

Once you determine the right mix of bonds, stocks, and other investments, it is time to implement it. Categorize your stocks or bonds according to their maturity- short, mid, or long term.

On the last note, there is no single solution for allocating assets. Just like Simran and her friends, individual investors require individual solutions. Asset allocation is not a one-time event. You can modify it according to your future goals and requirement. It is a life-long process of progression and fine-tuning.

To join our free Webinar on Asset Allocation,

Click here: www.facebook.com/badabusinesspvtltd.

Date & Time: Sunday 23rd May 2021 | 7 PM-8PM

To gain in-depth knowledge about the stock market, watch https://youtu.be/L_iJCNzDe-s.