Warren Buffett's TOP Rules and his journey?

What do you understand by the term “investor”? Is an investor a gambler? Perhaps. But if an investor is just a gambler, then why is there an investor at number 6, on the list of the world’s 10 richest people?
Yes, Warren Buffett is an investor who is currently ranked 6th among the world’s wealthiest individuals. Warren Buffett has a net worth of $154 billion. (According to Top Billionaires – Wikipedia)

You cannot call investing speculation. Because gambling is where you try your luck. But investing is where you earn profits using your knowledge, understanding, and wisdom.

The net worth figure of $154 billion clearly demonstrates that there is a difference between being a true investor and a speculator. The difference is that, in a way, everything we start is a gamble. because everything has two sides. Just like flipping a coin, it will either land on heads or tails. Similarly, when we start a business, there’s a possibility of both success and failure. However, the crucial point is that if we are investing in something, and we have complete information about it, and we thoroughly investigate why people need that particular goods or service, or if we invest in the stock market and conduct a fundamental analysis of the company (evaluating its financial statements and overall economic factors), then it cannot be called speculation.

Warren Buffett is a great investor:

He has included himself in the list of the world’s 10 richest people through his understanding, insight, and investing skills. Warren Buffett was born in Omaha, Nebraska, USA. Many people played a role in his becoming such a successful investor, guiding him with investment principles. He believed that these investment principles would remain relevant even hundreds of years from now, because while currencies may change over time, the fundamental principles of business do not. These are principles that can be applied to every business.

Warren Buffett’s focus was always on business and investing. Therefore, at the young age of just 11, he had already accumulated over $100 by doing odd jobs. He invested this money in shares of the American petroleum company Cities Service, where he made a profit of just $5. (According to Prabhat Khabar)

But this was just the beginning. At a young age (20 years old), he decided to apply to Harvard Business School. However, his application was rejected. But he didn’t give up. He had a strong desire to learn. So he applied to Columbia Business School, and this time he was accepted. Warren Buffett had a specific reason for wanting to attend Columbia Business School: Benjamin Graham (a renowned securities analyst) was a professor there. This is the man who played a significant role in shaping Warren Buffett into the great investor he became.

Warren buffet in his Teenage:

He learned that Benjamin Graham worked at GEICO insurance company, so he went there to meet him. However, he couldn’t meet Graham. Instead, he met Lorimer Davidson at the company headquarters. The two of them talked for several hours about insurance-related topics. Davidson was quite impressed by their conversation.

It is said that, Graham told him that there is only one rule of investing:-

: Never lose your money (Invest in things you understand completely).

With this advice, Warren Buffett highlighted some important concepts, such as compounding. This means earning interest on interest.

There is a example of compounding :

You invest some money. For example, ₹20,000.
First return: You earn interest on it. If the interest rate is 10%, that’s ₹2,000.
Compounding: This ₹2,000 is added to your initial ₹20,000, making the total ₹22,000.
Next return: Now the interest will be calculated not only on the principal amount, but on the entire ₹22,000 (meaning 10% of 22,000 will be ₹2,200), and this process continues.

Other than this he also invested in several excellent companies, one of which is Berkshire Hathaway (a textile manufacturing company). Buffett acquired this company in the 1960s and used it as a holding company to buy shares in other companies. He also invested in GEICO insurance company, which I mentioned earlier.

Moral:

It is these kinds of investment strategies that have made him so successful. His interest in investing stemmed from the fact that his father was a stockbroker. And this passion for investing, which he developed at the young age of 11, is what propelled him to such great heights.

Top Points:

Whether you come from a poor family or a middle-class family, it doesn’t matter. Try to accumulate capital even by doing the smallest of jobs. And invest in assets (mostly gold) that have a very low probability of incurring losses.
There’s no shame in learning. If you want to learn, you can learn anytime, from anyone, anywhere.
Never Lose your money, if you invested in something
Before investing, it is very important to conduct fundamental and technical analysis of the asset.
Warren buffet always follows the rule of 8-8-8 Rule [everyday 8 hours for sleep , 8 hours for work and 8 hours for your personal time( family, health etc.) you also have to follow this 8-8-8 Rule in your life.