Warren Buffett, better known as the oracle of “Omaha” is a genius of financial investments, especially those related to the stock exchange.
Almost out of nowhere he transformed a textile company (Berkshire Hathaway) into one of the most powerful in the world.
Berkshire Hathaway was born as a modest textile company, now owning shares in the world’s leading companies. All this thanks to Buffett’s keen eye.
Warren Buffett did not apply great formulas to be an investment genius, but rather simple principles, of which I highlight these 5:
- Never invest in a business that cannot be understood.
- If you can’t see your investments fall by at least 50%, don’t invest.
- Be fearful when others are greedy.
- Buy stocks that have a great track record and market position.
- Invest always long term.
The great results that Warren Buffett has achieved are due to point 5: Investing long term.
As the title of the post says: You only need to be patient to get great returns.
It seems too simple but it works. But just ask yourself with those who bought Bitcoin before 2017 and had patience… How did it go?
Now it seems fashionable to make quick profits, or rather to get rich quickly, because I regret to inform you that unless you have a “stroke of luck”, that does not exist.
On the other hand, if you are a patient investor you can make a lot of money in the financial markets.
If Bitcoin were something “fashionable” or “charlatans” as he points out, there wouldn’t be as much interest by Wall Street big boys in launching futures for investors, among many other reasons I could list.
The closest Warren came to crypto coins was a scheduled lunch with Justin Sun (CEO of TRON), which was finally suspended due to Justin’s health problems.
Now, if we apply Warren Buffett’s basic principles, we could choose the “right crypto currencies,” or whatever comes closest to that.
Buffett usually invests in companies that are well established in the market and mass consumption, such as Coca Cola, Gillette, and so on.
These companies have shown throughout history to be very stable, and offer large dividends, or generation of sustained cash flow.
If we were to apply Buffett’s principle, we would have to choose only “Blue Chips“.
Finally, don’t forget another of Warren Buffett’s principles: if you don’t see the value of your investments fall by at least 50%, don’t invest directly.[ratings]