A very good piece advice from Warren Buffett
The great
equity investor Warren Buffett’s investment skill is well known all over the
world. His words on investment consider like a bible in investment world. Most
of investment advisors, fund managers and professionals follow his investment philosophy.
I am also a follower of the great Buffett sir. Today, I am going to share some
excerpt from an article which has been read by me today’s newspaper.
In 1986,
Buffett bought a 400 acre farm in Nebraska and in 1993, he invested in retail
property near the New York University campus. This deal had happened after farming
and real estate bubbles had bursts. It means the prices of real estate and
farming land was on very low level. Although, he was not expert in the real
estate and farming and had very little knowledge about it at the time when deal
taken place.
Many years
later, the farm was worth 5 times what he paid for it, and the building now
returns annual distributions that exceed 35% of the initial equity investment.
The above
mentioned deals teach us very important lesson of long term investment. He says
“You don’t need to be an expert in order to achieve satisfactory returns.” He
further writes “But if you are not expert, you must recognize your limitations
and follow a course certain to work reasonably well.”
He says,
“Games are won by players who focus on the playing field-not by those whose
eyes glued to the scoreboard.”
One more
good advice he says, “Do not bother about daily market shout-out and keep your
focus on long term.” Some investors believe and follow the market pundit’s
advice on the equity market day to day basis that it the worst thing if you
follow them blindly. So ignore the chatter, keep your cost minimal and focus on
real return after paid taxes.
For more detail and any other query
related investment, you can contact me through my email.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
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