investing in stocksIn the present global village that we live in one cannot remain immune to economic turmoil in any corner of the globe. All investments gurus are advising people to start saving for their retirement for you know not what the future beholds.

The traditional methods of savings including investing in the precious metal, real estate, and collectibles.

Stocks is an alluring enticing and intriguing option that many are interested in investing but are worried that they might end up burning their fingers should the market enter a bear cycle.

While it is prudent to be safe and keep your money in savings accounts, the interest rates in these accounts are dismal and the returns insignificant. The only relief is your heartbeat won’t be proportional to the ever-changing fortunes of any company in whose shares you have invested. But should you miss a golden opportunity of earning good returns, because of fear of failure? If you don’t think so, read the Bitcoin Trader software review.

From the horse’s mouth

The legend Mr. Warren Buffet, the CEO of Berkshire Hathaway has some sensible advice all those who shy away from stocks.
Not one to mince words Buffet advises beginners to treat stocks as businesses and not mere tickers. He says that a good business is always a good investment and the returns might be high or low depending on various factors but there will be returns for sure.

He elucidates with the example of a convenience store that you might want to buy.Just like it is important to know everything about the location of a store, its competitors and the prices of the commodities on sale before you buy it, it is important to know everything about the company whose stocks you choose to buy; basically consider it to be more than a name on a piece of paper. He goes on to say that buying a stock is like buying a stake in the ownership of the business.

Another solid piece of advice Buffet gives is that one must never buy stocks on borrowed money especially for individual investors who might lose everything should the market crash. Imagine a scenario where the stock market plunges and or even rattled and you are looking at a future saddled with innumerable debts. Warren goes on to add that an unsettled mind cannot make a prudent decision.

The Oracle of Omaha asks investors to stick to long-term returns instead of getting derailed by the glamor of hedge funds and other high fee investments which are considered the “Smart Money” but are not so in reality.

Showing by example Buffet has not invested in the popular cryptocurrency bitcoin for the simple reason that he doesn’t understand it. He advises new investors to understand the business of a company whose stocks they are interested in before investing in it. Find out what are the influencing factors and how the company makes money. If you do not understand it is time to move on.
And finally, he states, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for ten minutes.”

Hence if you wish to venture into the stock market keep these pointers in mind and invest wisely, after all, it is no use to anyone if your money can’t get your returns.

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