Tag: Warren Buffett

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Business motivation

5 Top Investment Tips From Warren Buffett For Every Investor

5 Top Investment Tips From Warren Buffett For Every Investor
5 Top Investment Tips From Warren Buffett For Every Investor

Warren Buffett, even at the age of 92 years is famous for his smart investments along with his sense of humor in investing in the stock market. But even in his old age, his jokes continue to amuse people. Over the years, Buffett has invested in many profit-making behemoths, helping him and his clients generate record income.

Here are Warren Buffett’s top five investment tips for every investor:

1. Do not Put All Eggs in One Basket

When it comes to investment, Warren Buffett suggests that one should have a diverse portfolio. Never invest all your money in one scheme. Whether you are a beginner or a seasoned investor, diversification is one of the most vital strategies to invest in the industry because it mitigates the chance of losses. The idea behind this technique is to not put all your money in one place.

Diversification promotes spreading capital in different stocks across various industries. This squares the losses that you incur in one stock with the profits that you make in others. You can also watch this informative video on trading by Dr. Vivek Bindra- the best business coach in India.

2. Believe in Long Term Investing

If you are thinking about investing in stocks, think about owning them for 10 years. One should only invest in the stocks of a company if its products or services could be relevant in the next ten years. Buffett believes that going that extra mile before picking a stock would always pay off in the long term.

3. Create Multiple Income Sources

Warren Buffett suggests that if you want to create wealth, never depend on a single income. Always make investments to create a second or third source of income. Having multiple sources of income helps you to generate passive income and secure your finances for the future.

4. Seize the Opportunity

Warren Buffett says that opportunities come without notice.  So when it knocks at the door you should seize it and use it decisively. When stock prices are significantly low, investing heavily might be a good idea. Good prices may not come along again soon. He says, “When it rains gold, put out the bucket, not the thimble.”

Want to know how Warren Buffett became the king of trading? Watch his case study here-

5. Save Before Spending

If you spend more than what you earn, you will end up with a negative bank account. If you want to create wealth, you need to have a budget in place. Before spending, ask yourself, whether you need that expensive bag that you have been eyeing for months. Take out a fixed amount every month for the saving purpose and then whatever is left you can spend.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses. To know more, visit: www.badabusiness.com

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Finance

7 Best Tips You Should Consider Before Investing In Mutual Funds

7 Best Tips You Should Consider Before Investing In Mutual Funds
7 Best Tips You Should Consider Before Investing In Mutual Funds

Summary: Mutual Funds are one of the most popular tools of investment in India. A collection of bonds, stocks, assets, and money market instruments come with many benefits.

Warren Buffett once said, “Risk comes from not knowing what you are doing.” And when it comes to investment his words stand true. When you know how the market works, what kind of risk it involves, and know the essential tips and tricks of the same, you can become a good investor.

For beginners, Mutual Funds are the safest option to start investing in the market. Mutual Funds enable an investor with limited capital to make investments in various schemes like SIPs with as little as Rs. 100 or Rs. 500 to generate better earnings.

A mutual fund is an investment scheme made up of a pool of money collected from many investors to invest in various securities. The fund manager then uses these funds by investing them to purchase various securities including gold, stocks, bonds, etc. Each mutual fund will have a certain objective and different returns.

Before you decide to invest in mutual funds, follow these 7 tips that will help you to make a better decision in investing your money:

1. Read About Mutual Funds & Its Benefits

The new age investors believe in making passive income by making their idle money work for them. However, very few understand its true meaning and how to make the most of it. Many individuals are aware of the benefits that come along with investing in the stock market. But very few know that routing such investments through mutual funds would prove to be more effective.

Hence, you need to read as much as it is possible about Mutual Funds and how they work. What are the benefits and how you can reduce the risk that comes along with investments in just one asset category?

You can also take help from a wealth creator. He or she can help you in making investment decisions, just like a business coach helps you in taking critical decisions related to your business.

2. Learn about types of Mutual Funds

Mutual funds are segregated into distinct categories by asset class. They are divided into stocks, bonds, and cash, and then furthermore based on their style, objective, or strategy. There are three types of Mutual Funds in India:

a). Equity: High on both risk and potential returns, these investment schemes are the favorite of seasoned traders. However, beginners and investors with a low appetite for risk are cautioned before investing in any equity-oriented Mutual Funds.

b). Debt Mutual Funds: If you are risk-averse but want great returns on your investment, debt mutual funds are suitable for you. These fund schemes mostly invest in debt instruments like government bonds, corporate bonds, etc.

c). Balanced Mutual Funds: Also known as hybrid funds, this type of investment put money both in stocks and bonds. Its diversified nature provides balance and a perfect blend of both risk and rewards in terms of investments.

3. Find Your Objective

Before you decide to invest in mutual funds, you must know your objective. For instance, you can invest in equity funds, if you have long-term financial goals, but if you have short-term or medium-term financial goals, you can invest in debt funds.

Hence, your first step should be to decide on a goal. The time frame you are looking for and the returns that you are expecting will help you choose a fund that is best suited to your objective.

4. Learn About the Risk Involved

When thinking about investing, it is essential to know that the risk factor remains constant no matter which investment scheme you pick. However, there are numerous options available to help investors find one scheme that matches their risk appetite and return on investments.

5. Check the Expense Ratio

For the proper management of your funds, a commission is charged which is known as the expense ratio. As an investor, you need to figure out how much expense ratio a particular fund is charging, as it is calculated across the investor`s total portfolio and will have a significant impact. Hence, always pick a mutual fund that comes with a lower expense ratio.

6. Check Taxable Income on Your Investment

How much income from a fund will be taxable is something every beginner must consider. The returns from equity mutual funds are taxed based on the holding period and the applicable tax rate. Mutual funds are often efficient in terms of post-tax returns. For instance, long-term capital gains are taxed at 10% over and above the exemption limit of INR 1 lakh while short-term capital gains are taxed at a rate of 15%.

7. Track Past Performance of the Mutual Fund

It is crucial to check the track record of a particular Mutual Fund scheme before investing. From the duration to ‘Assets Under Management (AUM), you must learn everything related to the investment scheme you are planning to put your money in. Also, check the investment style of the fund manager and opt for a fund where the manager shows consistency irrespective of the market cycle.

Mutual funds are subject to market risk, which is why doing a fundamental analysis of a particular investment scheme becomes paramount. But, do know that no matter how good a fund has performed in the past, it won’t guarantee that the mutual fund will do well in the future. Keep these tips in mind before investing your money in a mutual fund.

LFP Plus by Dr Vivek Bindra

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Motivational

6 Billionaires With Some Very Strange Eating Habits That Will Leave You Stunned!

6 Billionaires With Some Very Strange Eating Habits That Will Leave You Stunned!
6 Billionaires With Some Very Strange Eating Habits That Will Leave You Stunned!

Summary: From eating ice cream for breakfast to eating only carrots, the rich and the famous millionaires do have some weird diets and uncommon food fetishes that will surprise you….guaranteed!

We often find ourselves looking to search for some healthy food and lifestyle changes to keep ourselves in the best shape. A healthy diet is essential for good health and nutrition. It not only acts as a fuel to your body to keep it loaded with the essential energy but also helps you against many chronic non-communicable diseases, such as heart disease, diabetes, and cancer.

Eating a variety of foods and consuming less salt, sugars, and saturated and industrially-produced trans-fats are essential for a healthy diet. And when we look at the rich-and-the-famous millionaires, most people imagine the life of a billionaire to include the endless ability to demand the finest things in life, including the ability to eat some of the world’s most delectable items and enjoy the healthiest, most expensive meals prepared by a personal chef.

However, the truth is far different from what we all assume. In this article, we are going to share some of the most strange diet fetishes of these millionaires that may sound bizarre. Are you ready to be surprised?

1. Sir Richard Branson

This high-powered CEO of Virgin Group is famous for his contributions to the world of music, entertainment, retail, and space exploration has led him to acquire wealth and notoriety across the globe. He was knighted at Buckingham palace, controls over 400 various ventures, and sits at the top of the corporate food chain, yet when it comes to the food for his consumption; he has one strange habit.

Branson is addicted to tea. He is known to drink as many as 20 cups of tea each day. He has also confessed in one of his interviews with The Daily Meal that he can’t survive without a cup of English breakfast tea.

2. Elon Musk

Elon Musk works for an excessive 90 hours a week and one would assume that the CEO of Tesla and SpaceX follows a strict diet to keep him healthy, active, and alert. On the contrary, Elon Musk skips his morning breakfast altogether and instead snacks on Mars chocolate bars instead. He relishes his lunch and puts more emphasis on his dinner plans if he is not working.

3. Warren Buffett

The chairman and CEO of Berkshire Hathaway are also one of the most successful investors in the world. However, his food choices will shock you. Instead of having a healthy breakfast, Buffett opts to have ice cream for breakfast, shoestring French fries for lunch, and drinks at least 5 Coca-Colas per day.

He also prefers eating McDonald’s for breakfast every day and never spends more than $3.17 as he told CNBC.

4. Mark Zuckerberg

Mark Zuckerberg, the $104 billion man, is the founder of Facebook and one of the richest men in the world. While many others in this position of extreme wealth would engage the finest chefs to create the best cuisine that money can buy, Zuckerman has opted for a much different path when it comes to the food he eats, and it’s not for the faint at heart. He went through a phase in 2011 during which time he would only eat the meat of animals he had hunted.

5. Bill Gates

With an astounding net worth of $137 billion Bill Gates keeping a healthy diet and lifestyle wouldn’t be so difficult. With that kind of money, he can get delightful meals cooked by the world’s best chefs. But instead of binging on healthy food, Gates keeps things simple, and quite unhealthy. He admits to being addicted to Diet Coke and drinks the beverage throughout the day. He’s rarely spotted without a Diet Coke in his hands. Along with a diet coke, he takes breakfast from McDonald’s.

6. Steve Jobs

Steve Jobs was known to go to extremes not only in his work but also when it came to his eating habits. The founder of Apple worth $10.2 billion was far more successful when it comes to technology than his ability to eat a balanced diet. He would sometimes just eat one or two foods at a time, for several weeks, and then he dabbled in being a ‘fruitarian’ for a while. Once, he had eaten only carrots and apples due to which his skin also turned orange. He would also fast using the days of not eating to create feelings of euphoria and ecstasy.

For these successful millionaires, many would imagine a personal attendant being on call at all times to cook up a storm of food requests on demand, and it would seem likely that caviar and other expensive food items would be the daily norm. That is not the case. These millionaires have quite weird eating habits that can’t be considered healthy!

We hope you enjoyed reading this article! Share and comment!

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses. To know more, visit: https://www.badabusiness.com/BCP-Event/?pp_code=BHBB000078&ref_code=SM

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Marketing

4 Mistakes To Avoid While Investing In Stock Market

4 Mistakes To Avoid While Investing In Stock Market
4 Mistakes To Avoid While Investing In Stock Market

Summary: While investing in stocks it is easy to get carried away by numbers and record highs. Don`t make these mistakes in the stock market especially when it’s too tempting.

Investing in a stock market is a serious affair and a long-term game. Despite this, many investors in India tend to succumb to their emotions every time the market hits a new high. There have been many firsts for the Stock Exchange. When it hit 1,000 for the first time, it was an all-time high! And then it reached 10,000, 20,000, 40,000, or 50,000…and with every new record, the story continued.

There will be a time when the Sensex will cross the 100,000 mark and then 500,000, but we don`t know when that will happen. No matter how many records the market is breaking, the basic rules of investing don`t change. If there is one important thing that you should remember while investing in the market, it is that market high is not a destination; it is a journey towards wealth creation.

To ensure that this journey is smooth and produces desired results, you can listen to a business motivational speaker who has a good experience in financial investment.

Here are some golden tips that you should consider before investing in the stock market while it rides the bull:

1. Avoid Fear Of Missing Out

Many people suffer from FOMO or fear of missing out when they could not participate in the stock market rally. Recently, the same happened in India and now there is a strong urge to invest before they lose more. But fear of missing out on some perceived gains should not be the guiding principle when it comes to investment. It is best to avoid FOMO because it will lead to many irrational money decisions that will result in losses.

2. The Market is Smarter

A market is a forward-looking machine. It means that the market always sees things we cannot. It has discounted the third or even the fourth wave of the pandemic. However, there is a huge difference between the market’s performance and a nation’s economy.

The Sensex has its own rules, which is why the market keeps proving everyone wrong. This is why investors should not overthink. Focus on diversifying your portfolio, asset allocation, and risk profile. Control the controllable before it goes out of control, i.e., your behaviour, your money, and hence your losses. To know everything about Share Market from the scratch, watch here:

3. Don`t Invest in Meme Stocks or Trending Stocks

You must have heard about various stocks and their sky-rocket prices without any strong fundamentals in place. It is a pure play of operators and the community. Similarly, many people invest in penny stocks and meme stocks in India based on the news for a quick gain. However, always know the fact that whenever a stock is trending, it is trending for the wrong reasons.

It is important to remember that you are investing in businesses and not in stocks. Find good businesses, and avoid investing in memes and penny stocks. Understand your risk profile, and financial goals, and do thorough research before you pick any stock, the way you do it before buying a car or a house.

4. Don`t Follow Anyone Blindly

Be it Rakesh Jhunjhunwala or Warren Buffett, never follow anyone blindly. These legendary investors are experts in the stock market and there is nothing wrong with their investing advice, but the issue lies in following any advice blindly. If you follow Warren Buffett, you must be aware of his famous quote on diversification. He says, “Diversification is for the ignorant.” It simply means that those who know how to pick the right stock at the right time should only invest in a few stocks instead of spending on multiple stocks across multiple sectors. But this does not always work for a retail investor.

When you invest only in a few stocks, you put yourself at a huge risk of having a concentrated portfolio. So always have a diversified portfolio, unless you have the money, time, and expertise to select stocks like Warren Buffett.

Never invest in one go, especially when the market is showcasing high fluctuation. So unless there is a good correction, always spread your investments into tranches. For example, if you have Rs. 5 lakh to invest, then divide that into five or six months and invest accordingly.

The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we at Bada Business offer an exclusive Business Coaching Program that comes with Foundation courses, specialized courses, and value-added courses.

To know more about our courses, visit: www.badabusiness.com

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Business motivation

5 Classic Books Warren Buffett Recommends For Every Entrepreneur!

5 Classic Books Warren Buffett Recommends For Every Entrepreneur
5 Classic Books Warren Buffett Recommends For Every Entrepreneur

Warren Buffett didn’t become a billionaire by just a sheer fluke. But by making smart and informed investment decisions to play a long game and by acquiring a vast amount of knowledge Warren Buffett has become what he is in the present day.

Today, not many people want to spend their time reading due to many reasons. But Buffett reportedly spends around six hours a day reading books. Though it may be a daunting task for many people due to their hectic lifestyle, if you are highly inspired by The Oracle of Omaha, you must read around “500 pages” every day.

Warren Buffett spends 80% of his time reading. He has read a lot of books over the years and has made book recommendations along the way. However, just like everyone he too has some of his favorites of all time and would love everyone to read, especially entrepreneurs who are starting a small startup business.

Here is a list of five books that every aspiring entrepreneur, solopreneur, and wantrepreneur must read:

1. The Intelligent Investor- By Benjamin Graham

At the age of 19, Warren Buffett first read this book in 1950. He points out that it is by far the best book about investment that includes a proper intellectual framework for decision making. He has also added a preface to the book`s fourth edition.

The Intelligent Investor, written by Benjamin Graham teaches its readers some of the most invaluable investment strategies regarding value investing in the stock market.

So what is his favorite way to accumulate knowledge? Reading. Watch the amazing journey of Warren Buffett here:

2. Business Adventures: Twelve Classic Tales From the World of Wall Street- By John Brooks

First published in 1969, this book is an interesting compilation of Brook`s New Yorker stories. It takes its readers on a journey where it recounts events such as Ford`s introduction of the Edsel, and the rapid rise of Xerox in the days before Steve Jobs disrupted the market with his revolutionary ideas.

When Bill Gates asked Warren Buffett about his favorite book 19 years ago, Buffett gifted Gates with his copy of the same book. Though the business world has changed a lot, Gates says, “Brooks’s deeper insights about business are just as relevant today as they were back then.”

3. Security Analysis- By Benjamin Graham & David L. Dodd

While studying at Columbia University, Buffett read Security Analysis with both its authors. “Together, the book and the men changed my life”, he wrote. Since then he has been following their investment strategy, and it continues to serve him well to date.

4. One Thousand Ways to Make $1,000– By F.C. Minaker

If you can get past the dated language, Buffett credits One Thousand Ways to Make $1000 to kick-start his career. The book was written in 1936, and Buffett found this book in the school library at the age of 7 years. The lessons embedded in this book have stood the test of time and remain as valuable as they were back in 1936.

5. The Most Important Thing- By Howard Marks`s

Warren Buffett has always been an advocate for taking risks. But he firmly believes that there should be a methodology behind it. To help develop that methodology, he recommends “The Most Important Thing”, by Howard Marks. Marks, co-founder, and chairman of Oaktree Capital Management is a renowned investor known for his insightful assessment of market opportunity and risk.

If you want to understand the dynamics of investment and business, these books are recommended by Warren Buffett and every entrepreneur must read them.

We know what you are thinking! The idea of managing a business is easier said than done and we completely agree with you. This is why to help you move forward with your business goals, we are offering Business Coaching Program for Entrepreneurs.

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Business motivation Powerful Personalities

4 Business Leaders Who Bounced Back From Their Mistakes!

“Courage is not the absence of fear, but rather the judgment that something else is more important than fear.”  – Meg Cabot

One of the scariest things that almost every human being feels to do is to make mistakes, to take risks and meet failure, to try out of the league and fall hard. But mistakes are essential for professional as well as personal growth for both the individual and the organization.

We all make mistakes, every one of us. Making mistakes is a sign of business motivation, and that we are trying something new in your life. It is the pathway to great ideas and innovation. It is the best way to learn and grow. If you are not making mistakes, then we likely are not doing enough new things outside our comfort zone, and that itself is a blunder.

If you thought only common people like you and me are prone to making mistakes in the business, think again! Legends like Ratan Tata, Narayan Murthy, Satya Nadella, Steve Jobs, and many other successful millionaires have made mistakes and learned from them too!

Here are some mistakes that these leaders made, but learned from them to bounce back in their lives:

1. RATAN TATA

One of the most esteemed and respectable personality in the business world, Ratan Tata needs no introduction. The Chairman of Tata Trusts and former head of Tata Sons  has achieved great success with his incredible business ideologies and strategies. However, even he admitted his mistake when his ambitious project TATA NANO failed to create waves in the market.

According to him, his greatest mistake was branding the Nano car as the cheapest instead of ‘most affordable’, which was the true intention behind bringing it into the market. By using the word ‘cheapest’ instead of ‘most affordable’, a negative impact was created on the market.

You can watch the full story of what led to the failure of TATA Nano, right here to get some business motivation from this legendary industrialist.

2. SATYA NADELLA

Indian-born Satya Nadella made headlines when he replaced billionaire Steve Ballmer as Microsoft CEO in 2014. Before he replaced the former CEO, Nadella was Microsoft EVP of the cloud and enterprise group. Since he took over the charge, Microsoft`s stock has increased by more than 150%. However, this was not always been the case.

In July 2015, the Microsoft CEO acknowledged that thinking that the personal computer (PC) will reign supreme forever was his biggest mistake. Today, smartphones have overshadowed PC as the hub for everything to some extent.

He has steered Microsoft away from a failing mobile strategy of NOKIA, and focused on other segments, including cloud computing and augmented reality.

Watch the full story here:

3. ELON MUSK

Elon Musk, who is the founder, CEO, and Chief Engineer at Space X is also the CEO of Tesla Motors. A successful entrepreneur and a business magnate  has also made mistakes that he still regrets. While participating in a Q&A at South by Southwest, the Tesla CEO said that the biggest mistake that he committed in his entire career was not being more involved with Tesla in his initial days.

From 2004 to 2008, Elon Musk was a lead investor in Tesla. However, he was also the CEO of SpaceX, a space exploration company. Today, he has moved past his mistakes and regrets to run a successful million-dollar company.

Watch his inspiring journey, right here: 

4. WARREN BUFFETT

The year 2015 marked the 50th anniversary of Warren Buffett and his partner`s decision to take control of Berkshire Hathaway. However, the current CEO of Berkshire Hathaway once considered this to be the biggest investment mistake and called it a “monumentally stupid decision”. He said that the only reason behind him acquiring the company was because it was cheap.

Watch his amazing entrepreneurial journey, here: 

The majority of entrepreneurs and professionals are not particularly interested in making mistakes and reliving them. However, many self-made millionaires are masters at learning from their successes and failures. That is the only way to analyze what went right, and what didn’t work out for the business.

So, keep making new mistakes, but find reasons for their failures and ensure that you do not repeat them. That’s the key to success and gaining incredible experiences in the journey called LIFE.

Prepare yourself to counter the challenges that you might encounter on your entrepreneurial journey with our online business courses for entrepreneurs. You can take ‘Entrepreneurship Course’ and take the first step towards achieving your dreams.