Whenever it comes to investing in mutual funds, many people think that it should have an expert -like understanding or the help of a knowledgeable is necessary. But one of the most successful investors in the world, Warren Buffett thinks completely different from this.

He is 94 years old and he is the CEO of Berkshire Hathaway, yet his investment attitude is very simple, stay for a long time, be patient and ignore the noise of the market.

Even though Buffett himself has never invested in mutual funds, his thinking is equally useful for every investor today. If you are also thinking of creating a future through SIP, then these 5 learns of buffett can make your path easier.

Low -cost index funds are a sign of understanding

Warren Buffett believes that most of the big fund managers charge huge fees, but the profit does not actually reach investors. For this reason, they always recommend low-cost index funds, especially for small investors who cannot see daily markets. He has even said that after his death, 90 percent of his assets should be imposed in S&P 500 index funds, that too in cheap ones. In India too, low -cost index funds like Nifty and Sensex are available, which are capable of giving stable returns in a long time.

The right investment time

Buffett says, “Invest that you can keep without selling for 10 years.” That is, one should avoid the habit of changing the funds again and again. Mutual fund investment is a long -term journey – whether it is preparation for retirement, education of children or making property. Buffett’s advice is to choose a good fund, whether the market goes up or down – stay on it. Real property is formed over time.

Investment, not IQ, discipline matters

Buffett believes that there is no need to be genius to become good investors. He has said that success comes to those people who are able to keep themselves separate from the nervousness or enthusiasm of the crowd and stand on some basic principles. Mutual fund investors do not have to read the market daily or understand a corporate balance sheet. Just three things are required – patience, regular SIP and practical expectations. If you follow these three things, then you can get good benefit in a long time.

Do not look at the market every day, you will do harm

Buffett believes that keeping an eye on everyday movement of the stock market can be harmful to your investment. He has said that people often get scared and take wrong decisions due to the ups and downs of the market. He has a famous statement – “The market transfers money from impatient people to patients.” If mutual fund investors start watching NAV everyday, then they can hurry to shut down SIP or withdraw money. Buffett is advised, set SIP automatically, give at least 5-7 years and consider the fall as a chance, not the danger.

Invest when people are afraid

The most famous sentence of Buffett is, “When people are greedy, fear, and when people are afraid, be greedy.” That is, when the market declines and everyone is nervous, then the real investor seeks the opportunity. In such a time, it can be beneficial to continue SIP and invest additional if possible. History is witness that those who continued investing in the falling market, got excellent returns in a long time. There is a learning of buffett, investing wisely in an environment of fear is the real smartness.

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

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When Warren Buffet stood at the age of 94 in the last minutes of the 60th annual meeting of Hathaway, everyone understood that he would tell an investment formula or a funny anecdote as usual.

But he said something that shocked everyone. Even his successor Greg Abel was not aware of this news. Buffett announced that this would be his last shareholders meeting and will now take over the company’s reins.

29 lakh crore responsibility on Abel’s shoulder

Greg Abel has a $ 1.2 trillion dollars’ responsibility on the shoulders. Along with this, he also has the responsibility of stocks from veteran stocks like Apple and American Express to insurance, energy, railway and consumer brands. Apart from this, they are getting inherited cash of $ 350 billion, they are about 29 lakh crores in Indian rupees. Now the question arises that how will Greg Abel bear all these responsibilities.

Buffet’s magic and abbal test

Alice Shroder, who wrote a biography of Warren Buffett, says that Buffett’s charisma was different and it is difficult to repeat it. However, Abel has already proved his ability. He brought Berkshire’s energy unit to large heights and made many big deals. But now they will have real test. Actually, Berkshire has a huge investment portfolio, which is very big responsibility to handle.

What will happen to 4 lakh employees?

About 4 lakh employees work in Berkshire. In such a situation, after Warren Buffet, this big question has arisen whether Abel will be able to handle these 4 lakh employees. However, Abel has said that he will follow the principles of Buffett. But there are many questions in the minds of investors whether Berkshire’s stock will be equally attractive without buffett? Will the company give dividend or increase share back?

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Warren buffett strategy: When billionaires from all over the world were losing their wealth due to the devastation in the stock market, Warren Buffet was quietly increasing his property. There was chaos in the global markets after US President Donald Trump imposed heavy tariffs on 184 countries.

The stock markets declined and the US market reached the lowest level after March 2020. But amid this decline, Warren Buffet not only saved himself, but also increased it to $ 155 billion in his net worth to $ 11.5 billion.

Everyone’s money drowned except Buffet

The total wealth of 500 richest people in the world suffered a loss of more than $ 500 billion within two days. Only on Friday, billionaires suffered a loss of $ 329 billion, which is the biggest one day loss ever after the biggest decline of the Kovid-19 period.

Alan Musk suffered the biggest shock, whose assets declined by $ 135 billion. Mark Zuckerberg lost 27 billion, Jeff Bezos 45.2 billion and Bill Gates lost $ 3.38 billion. In contrast, Warren Buffet was the only billionaire whose property increased.

Did Warren Buffet already know everything

The biggest reason for this was the decision of Buffet, which he took in 2023. In fact, when the world was earning profit from the stock market, at that time she reduced the investment in the stock market and decided to keep it in cash at about $ 300 billion. That is, he took out this money from investment and kept it in the bank account.

Apart from this, in 2024, he neither made aggressive investments, nor put his hand in a new big deal. Instead, he started selling stocks slowly from his portfolio. Berkshire Hathaway had assets like cash and cash of 334 billion by the end of the year.

This cash of Buffet has now become about one-third of the total market value of Berkshire, which shows how cautious they were about the high valuations of the market in 2024. During this time Berkshire sold shares of $ 143 billion, which is several times more than $ 41 billion sold in 2023 and 34 billion $ 34 billion sold in 2022.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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