Warren Buffet is considered as one of the most successful person in stock markets. We do find him sharing marvelous advice at different junctures. In fact there is a whole book compiled on Gems by Warren Buffet. Would love to share 5 Gems from Warren Buffet with you. Also , we are sharing our learnings for each of the gems shared.
1.In Investing, it is not necessary to do extraordinary things to get extraordinary results. Do ordinary things well. Same holds true with life.
Nothing can be more true than this. In our journey of options trading of more than 11 years, sticking to simple calculations and logics have always worked for us. So no complicated charts or software, just plain simple strategy and logic has always helped us to cruise even when markets behave irrationally.
2. The intellect should be the servant of the heart , but not its slave.
One’s logic, intelligence and thinking can be superseded by his/her gut feel sometimes, but it cannot happen every-time. Hence , this should not become a norm. Norm should be the proper logic and clear thinking which can be achieved through judicious use of strategies only.
3. Its a good idea to review past mistakes before committing new ones.
Learning from the past mistakes can be a major key for our future success. Only if we learn from previous mistakes, we can call that mistake as an investment. This learning differentiates a mutual fund investor from direct stock market investor.
4. Price and value can differ; price is what you give,value is what you get.
Important to understand the difference between a good deal and a bad deal. Many times we have discussion with our prospective clients who feel that they are not able to attend our workshop because the perceived price is high. But people who have seen the perceived value, they have gone ahead and are reaping benefits which are so high that are totally incomparable to the price paid.
5. You can’t make a good deal with a bad person.
It is almost impossible to know a person before dealing with him. In our own experience also, we have seen, in last five years of providing training, every once in two years or so, we come across a person who will never get satisfied and in-spite of taking extra-ordinary resources , he will bad mouth. One or two such persons in five years means more than 99.99% clients are satisfied and hence efforts to get a good deal from a bad person are going to be futile.
But yes, it really reflects the importance of dealing with a trustworthy person. This is really critical for your personal as well as business success. Thank God , we are strongly supported and encouraged by our clients so far.
More insights in next post.