M Ali Alam
3 min readMar 18, 2021

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THE WARREN BUFFET THEORY OF INVESTMENT

All the richest people in the world are connected to the business sector. Salary only meets domestic needs. You cannot build a palace of desires.

There is no one in this world who does not seek wealth. The easiest way to earn wealth is to invest. Where to invest money? What should be the characteristics of management? Which company is more profitable to buy? The answers to all these questions are known from the principles of Warren Buffett, the world's most successful investor.

Tricks of quality business:

There is no one in this world who does not seek wealth. The easiest way to earn wealth is to invest. Where to invest money? What should be the characteristics of management? Which company is more profitable to buy? The answers to all these questions are known from the principles of Warren Buffett, the world's most successful investor.

Investing and making money is a completely art, not everyone knows how to use it. According to Warren Buffett, we should do only one business at a time. I invested my money and succeeded.

Investing in multiple businesses also divides our time, energy and resources. As a result, we cannot fully focus on our work, which results in failure. Focusing on one thing at a time is the only guarantee of success.

How to buy a company:

It is important to thoroughly research the business in which you are investing. Buy a company or business that you can easily understand. What is meant by money investment? What is the rate of return? And what is the demand for it in the market? Knowing all these things is the key to success.

Never waste your money. The more money you waste, the less you will use in investment and the less you will get the benefits of compound effect. It is better to do it. When the opportunity arises, money should be invested.

Check the quality of management :

Whenever you plan to invest in a company, find out about the top level authority of the company such as the CEO. Never share your business with a fraudulent or dishonest company. Company Shares Information From Your Investors Shares? Does she admit the failure of her product? Because the company that admits its mistake also tries to fix it.

Admitting mistakes is like making the journey to success. Therefore, being aware of all these things before partnering in your business is the basis of success. The result of doing a good business deal with a bad person is always bad. comes out. Do you know when he will run away and your money will sink?

Check the financial quality:

One should choose a company that is free from the burden of debt. Because such a company is less likely to sink and the chances of success are higher. One should also keep in mind how much profit the company makes on an investment of one rupee. Giving? For example, Warren Buffett does only the company that is giving a profit of twenty rupees for an investment of one rupee. So choose the company that gives the highest return on investment.

These valuations should always be used on a long-term basis. The longer you hold on to your shares, the higher the profit will be, and the higher its market value.

Follow Warren Buffett's investment theory and enter the building of applause. Where does success come from? You have to be able to do that.

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M Ali Alam
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I am freelance writer and connected with teaching profession as teacher .writing is my passion.