Learn to Invest in Stocks Like Warren Buffett

As you start accumulating wealth, you will reach a point in your life where it no longer makes sense to simply working for money. At this point, you will start considering investing a portion of your savings to let it grow by itself. Another question arises, what do you invest in? Properties, gold, or business? Or, is stock investing the answer?

A Look Into Stock Investing

There is no such thing as a risk-free investment, and stock investing is no exception. This is why investors should always equip themselves with knowledge before getting started, such as at least joining investing classes (or “belajar saham“, as the phrase goes in Malay) from a trusted education provider. Make a wrong move and listen to stock tips too often, you might find yourself in trouble with a high risk of losing your investment capital. So, be careful!

How to Protect Your Investment

Hearing about the risk probably has a lot of investors scared. The thought of losing your hard-earned money alone is scary. Instead of being fearful, we should actually find a way to learn to invest safely. That comes only with knowledge. When it comes to stocks, value investing has become a popular method, all thanks to the living legend, Warren Buffett.

Invest in the Right Business

Not all stocks are right for you. According to Buffett, the first rule of investing is to understand the nature of the business of the company you are putting your money in. Think of yourself as a banker, you shouldn’t simply give your money to any company. Instead, study their business model and determine if they have growth potential.

Invest in the Right Management

Leadership can make or break a company. Under this second factor, you should examine the management, especially the key executives on whether they have the right skills and experience to steer the company forward. This part is slightly tricky since it is quite a subjective matter. However, when done right, you may end up finding yourselves companies with the next Steve Jobs as the CEO.

Invest at the Right Price

The rule in value investing is to never overpay for a stock. To know this, you need to first master the way to evaluate the actual value of a stock. This is called the intrinsic value. By using various valuation models, you can determine the right entry price which helps to lower your risk in the future.

Money is in the Waiting

More often than not, amateurs tend to get anxious every time their stocks go up and down. This has led many investors to make rash decisions, which eventually cost them their investment. To steer clear of this mistake, make sure you invest with a clear mind. One practical way to do that is to log your investment actions in a journal.

How Do You Increase Your Knowledge?

If you are a beginner investor, it is highly recommended that you invest in knowledge first. This will save you a lot of investment mistake in the future. If you are a shariah investor in Malaysia, Bijak Labur does offer a free webinar to the public. Feel free to reach out to their website to get more information: https://bijaklabur.com/belajar-saham/

P.s. Note that this class is conducted in the Malay language.

Good luck!