18 Golden Investing Rules That Will Make You Beat Warren Buffet
Part 2 of 2. Part 1 is on the bottom.
If you or your close friends are investing in stocks you should read this.
Could you be more successful then Warren Buffet?
The world is constantly changing so why wouldn’t your equity portfolio do that? Stocks are changing and so does the world. We should continually switch stocks, weighting them right, and look for other sectors that are becoming more important for the world, for example green stocks or enviroment friendly. Try to follow the big trends, the megatrends that will drive in one path for more then 100 years.
Buy and hold strategy is often preceded by well known investors with names such as Warren Buffett, which has also been given the epithet of the world’s best investors. But we have to remember that it took several decades before he could call himself a billionaire. And regardless of popular belief, it is not just sitting on his hands that Buffett has become one of the richest people in the world.
Does Warren Buffen change his portfolio?
Buffett’s investment company Berkshire Hathaway does a lot of business all the time. 2019 In the third quarter alone, 750,650 shares were sold in Apple, 31.4 million shares in Wells Fargo, 1.6 million shares in Sirius XM and 370,000 shares in Philips 66.
What are the strategy that could be better then Warren Buffets buy and hold?
Richard Rosso from MarketWatch presents rules that will work better than a classic buy and hold strategy. I will writte them below with some modifications.
Here are the first 9/18 golden rules that could change your investment performance for the better?
The goal should be to be right in 70 percent of your investments, it is impossible to always be right
Don’t trade stocks all the time – It can be easy to trade in the stock market. Especially when the comission is low and the market is constantly available. However, a great reward awaits those who dare to wait for the right opportunity, and then have money to invest. Don’t forget that a successful year requires only one or a few good deals.
Choose an investment strategy that suits your personality – One of the main reasons why so few make money on other people’s trading systems and strategies is that they do not suit them as a person. The stock market is probably the most expensive place to learn more about yourself.
Long-term view is not to give up – Several of the very successful stock traders interviewed in Marketwizards have a varied history with both one and three failures in the baggage. What they all have in common is that they did not give up, but continued to develop their strategies, despite the headwinds.
Decide when to buy and when to sell before making a stock transaction – immediately after the decision to buy, you are no longer objective. When the stops are to be taken must be clear in advance.
15. Learn Lessons From Your Losses – Evaluate every bad deal, there are great lessons to be learned from their own mistakes.
The best deals show profit from start – A deal that goes your way from start is proof that you are right in the market.
In all sectors, buy the market leader – Livermore aims here to buy into the company whose share shows the strongest development in the stock market. Not necessarily the company that has the largest market share for its products.
Finally, my favorite advice from Jessie Livermore on the theme of long-term. It is also the most difficult to absorb. The lesson is about long-term, riding their winners and patience.
”It was never my thinking that made the big money for me. It was my seat. Got that? My sitting tight. ”
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Here are my other post about megatrends that I personaly like to follow / clickable
Do you have a strategy in investing?
Hint: Try to find out more about megatrends of the world. If you find them with some stocks connected to the trends, it could be your way for financial freedom. For tips of megatrends check out my other blogpost.
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Historical returns are no guarantee of future returns.
An investment in securities / funds can both increase and decrease in value and
it is not certain that you will return the invested capital.
The return may also increase or decrease due to changes in the exchange rate.
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MarketWatch. Avanz. DI. Google trends. MarketScreener.