what is value investing, lessons on value investing from warren buffet, warren buffet’s money lessons | Personal Finance News

If you’re looking to invest money for wealth creation, it is important for you to learn lessons from the best in the business — the Oracle of Omaha, Berkshire Hathaway chief Warren Buffet. Here are 5 money lessons you can learn from Warren Buffet.

Warren Buffet’s lessons on investing. (Getty Images/ depositphotos)

New Delhi: Berkshire Hathaway founder and chief Warren Buffet’s name is a byword for value investing. Numerous investors have learned from him when it comes to buying stocks and creating value for investors. Over the years, the most important lessons on investing have been shared by Buffet in his annual letters to shareholders.

Warren Buffet’s lessons on value investing

Research: Warren Buffet has laid emphasis on the importance of doing your own research. Read the financial statements, and invest like you wil never sell the stock. Believe in the company fundamentals, not the leadership, for the latter is susceptible to change.

Build a moat: Invest in companies that have an advantage over their competitors. This is akin to building a moat, a line of protection similar to the water body that used to surround castles in the Middle Ages.
Similarly, the advantage that a company has over its competitors is a moat and investment in such companies is similar ot having a moat for your investments.

Keep it simple: Investment has some fundamental principles. According to Buffet, one should keep the noise out nd invest in a simple manner.

Ask the right questions: Buffet always makes it a point to question his investment choices. He does this before making the actual investment. It is good to question your choices for clarity.

Shut the noise out: Never invest based on trends, or reports or noise around a certain stock. Always make an objective decision when it comes to buying stocks, says Buffet.

Warren Buffet’s secret investment

Berkshire Hathaway chief Warren Buffet recently lifted the curtains from his hush-hush $7 billion investment. Berkshire bought 26 million shares of Swiss insurer Chubb for nearly $6.7 billion. Chubb’s share price surged nearly 8 per cent this week after the SEC disclosure made by Buffet’s company Berkshire Hathaway this week.