by PENN ROSS
The only question among the Indian investors is “Is this the best time to invest in gold?” According the world’s third-richest man, Warren Buffet, the answer is a big ‘No’. Even though gold is a favorite investment for the Indians, Warren Buffet announced to an audience in New Delhi that this isn’t at all the right time to invest in gold. As per the financial czar, gold, art and oil are investments that never produce any product or income. So, the investors who buy them are doing nothing but waiting for the assets to become popular among other investors in the near future.
Warren Buffet also added that if all the gold in the world could have been condensed, it would rather take the shape of a cube that measured 67 feet on all sides which could fit into an auditorium. But what would people do with gold? Would they fondle with it or stare at it? With gold, you bet on the price of the commodity and not on its productivity. Rather than gold, he advised the Indians to be keener on investing in those assets that are actually productive like stocks of farms that produce crops. From his personal experience, he has made huge returns through such aforementioned investments, valuing nearly $50.
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| Warren Buffet |
Some investment tips shared by Warren Buffet
The key to success lies in the fact when you pick the right stock
Mr. Buffet repeated the fact that he always relied on the principles that were taught by his Guru, the mantra of choosing the stocks that were cheap than their actual worth. He doesn’t look at particular sectors while choosing and identifying stocks. Instead he just does a research of the companies whose business he understands and comprehends. He chooses those stocks where he sees the income potential to multiply in the next 5-10 years. Coca Cola is one of his holdings and he is of the opinion that Coca Cola is going to sell more and more products in the coming years. In comparison to Coca Cola, he actually maintained distance with the social media and technology firms that operate in the fast-changing world.
Knowing when to sell a particular stock
This is a tougher decision than the decision to buy a stock. Mr. Buffet holds on to stocks for many long years as he doesn’t feel the urge to become rich within the next few days or weeks. He therefore advised the Indians that one should sell off a stock immediately only when he gets a far better investment opportunity or when some particular thing has changed about the company which the investor doesn’t approve of.
Therefore, when you’re wondering about the ways in which you can invest your hard-earned money, you should take into account the investment tips offered by Warren Buffet. Take measured and informed decisions and avoid bad investment decisions that can boomerang you in the long run.
Mr. PENN ROSS, Contact at penn.ross6@gmail.com
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