Warren Buffett, widely deemed the most successful investor
in the world. This week I learned more about the man as I watched a documentary
titled “The World’s Greatest Money Maker”. Having known that he is one of the
richest man in the world, he has been an inspiration for me to pursue my path
to the finance world. There are many ways to invest our money and after
watching this documentary, it has expanded my knowledge that there are
different ways to look at investments.
Warren Buffett is the chairman and CEO of Berkshire
Hathaway, multinational conglomerate holding company. Unlike the others on Wall
Street who invest on stocks by speculating that the price would go up, Warren
Buffett invests in things that he is capable of understanding. I have learned
that investing through understanding the fundamentals of the earning power is
better than speculating as it is less risky. I used to always believe in the
saying “do not put all your eggs in one basket”. Although Warren Buffett
believes in what he does and sticks to his own belief that it is better to not
diversify so much, I feel that it depends on how confident you feel about an
investment. If you are confident in your analysis of the investments you are
making, then putting more money in them is better than spreading the risk
throughout your portfolio. Although the tips that Warren Buffett shared may
sound simple, it definitely is not easy to put them into practice, or else
everyone will be rich like him.
After watching this documentary, I have learned to see
things from different perspectives and not stick to only one idea or way of
doing something. I have also learned that determination is the key to success
in anything that we do, be in succeeding in the financial world or simply
succeeding in play a game of football. This understanding is important to me in
future and I will keep in mind of the different things I have learned watching
this. Being humble is also an important trait as we can see, the financial
crisis in 2008 means that anyone can fail at any given time.
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