Warren Buffett He remains in the top 10 of the richest men in the world at over 90 years old and despite the fact that eight decades have passed since the first time he bought shares: the American, one of the main references for those passionate about markets, He has a series of golden rules for making a profit through investments, which have been included in his books. Many of them have even become bestsellers.
The Nebraska native is the son of an Omaha stockbroker and, as if by a twist of fate, Born on August 30, 1930a year after the historic crash that led to the Great Depression. When he was barely 11 years old he became involved in the financial world and acquired land during his adolescenceAlong with his primary studies, the young man also managed to run a small shop selling soft drinks, lemonade and newspapers.
Buffett is the idol of market lovers. REUTERS/Scott Morgan/File Photo
However, it was not until 1956 that he founded his own company, Buffett Associateswho subsequently negotiated to obtain the entire percentage of the textile company Berkshire Hathaway. Beyond the fact that he has a net worth of close to 132 billion dollars – according to official figures from Forbes Magazine – the truth is that He boasts of having a rather austere lifefar from ostentation.
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In addition, his passion for philanthropy is well known. He pledged to donate 99% of his wealth to the Bill & Melinda Gates Foundation. On the blog of the Spanish bank “Bankinter”, the businessman left a list of guidelines to follow for those people who want to bet on luck in the stock market, even without having too much knowledge: he himself preferred, on repeated occasions, Don’t invest in businesses you don’t understand or that were complex at a general level.
Warren Buffett’s rules: from being conservative to thinking long-term
In principle, the American recommended having a profile “conservative and defensive” to avoid losing money, especially in large sums: “Before thinking about winning, the priority is always to protect capital.” He also warned that price variations do not always reflect changes in the value of companies, so when prices fall, an opportunity might present itself of purchase.
At the same time, he stressed that it is necessary to maintain a critical and independent mindset in the face of fluctuations, whether bullish or bearish. In this sense, Buffett usually gives greater importance to the quality of the companies in which shares are acquired: “It is much better to buy a wonderful company at a reasonable price that a reasonable at a wonderful price”.
Berkshire Hathaway CEO has dumped his Apple shares. REUTERS/Kevin Lamarque/File Photo
Interestingly, the American also called for trusting personal instinct using an analogy: “Wall Street It is the only place where people who travel in Rolls Royce receive advice from those who travel on the subway”He said that one knows better than anyone else which assets fit one’s risk perception. However, he said that one must be patient and think long-term.
Warren Buffett’s rules: his take on corporate strength and the move that surprised the market
The tycoon usually pays attention to management when entering a market: “Try to invest in companies that can be run by an idiot, because sooner or later they will be.” On the other hand, he explained that The durability of companies is best appreciated in lean times; Being aware of your resilience in difficult times can be the key between winning and losing.
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Finally, Buffett provided reassurance: While the United States experienced two World Wars, a host of military conflicts, internal problems, dozens of recessions, financial panics and even pandemics, The Dow Jones has always maintained a growth trend. The billionaire recently outbid the Federal Reserve in terms of obtaining treasury bills and dumped a large amount of Apple shares, predicting a pessimistic scenario: will the Oracle be right?
