imagine this you've worked hard saved $10,000 and proudly stashed it in the bank fast forward 10 years and due to inflation that money now buys you what $6,000 could today meanwhile Warren Buffett who started with just a few thousand has built a fortune worth over $100 billion by following simple - tested investing rules so what does he know that most people don't in this video we will break down seven investing rules from Warren Buffett that can help you make smarter financial decisions


avoid costly mistakes and grow your money without falling for hype or risky Trends and trust me rule number seven might completely change the way you see investing let's dive in number One never lose money Buffett's number one rule don't lose money and his second rule never forget rule number one it sounds simple but most investors break this rule all the time let's say you invest $11,000 in a stock and it drops 50% now to just break even you need a 100% gain that's like falling into a bottomless


pit and realizing you must fly Buffett avoids unnecessary risks by to playing defense first then offense he doesn't Chase speculative Investments or short-term gains instead he focuses on assets that protect his Capital while allowing it to grow so before you invest ask yourself what's the risk of losing money if it's too high walk away because in investing avoiding significant losses is just as crucial as making big gains two never forget rule number one war Buffett famously said rule number one


never lose money rule number two never forget rule number one inch but didn't he lose $25 billion in 2008 Yes but his point isn't about avoiding short-term losses it's about avoiding bad Investments and Reckless decisions Buffett doesn't Chase Trends or gamble on hype he invests only in businesses he thoroughly understands and believes in for the long run he knows Market downturns are temporary but bad Investments can cause permanent losses that's why he avoids a risky speculation


and focuses on solid fundamentals not short-term Market swings a great investor needs discipline more than intelligence when markets crash most people panic and sell at the worst time when stocks soar they rush in at inflated prices on the other hand Buffett stays rational and sticks to his principles the lesson be informed invest wisely and never treat the stock market like a casino three buy businesses not stocks if you wouldn't buy an entire company why would you buy its stock Buffett doesn't see stocks as just


ticker symbols he sees them as real businesses with customers profits and Futures that's why he doesn't invest in the trend of the month instead he looks for companies that will still be thriving 20 30 or even 5050 years from now let's take Coca-Cola back in the 1980s people called it a boring investment but Buffett saw business with strong branding Global reach and consistent profits today his stake in Coca-Cola is worth billions and the company is still growing so before you buy a stock ask yourself if the stock


market closed for 10 years would I still want to own this business you might be investing for the wrong reasons if the answer is no four be greedy when others are fearful when the stock market crashes most people panic and sell Buffett he goes shopping in 2008 while the world was in financial chaos Buffett invested billions in companies like Goldman Sachs and Bank of America While most people were running away he was buying at a discount think of the stock market like Black Friday when prices drop do you run away


no you grab the best deals investing works the same way market crashes aren't disasters they're opportunities the best investors don't follow the crowd they do the opposite five our favorite holding period is forever imagine you own a small thriving coffee shop would you sell it just just because business slows down for a few months no you'd wait because you believe in its long-term success that's precisely how Warren Buffett sees investing if you wouldn't own a stock for 10 years don't own it for 10 minutes


during the 2008 financial crisis Panic drove investors to sell at rock bottom prices Buffett however compared it to an economic Pearl Harbor a disaster but not the end instead of selling he held on and even bought more profiting massively when the market recovered the biggest threat to investors isn't Market crashes fear and greed jumping in and out of stocks destroys wealth Buffett's strategy find great businesses invest and let time do the work that's how real wealth is built six stick to businesses


you understand Warren Buffett has a golden rule if you don't understand how a business makes money don't invest in it not just what they sell but how they stay profitable who their competitors are and what their future looks like take Wrigley's chewing gum for example Buffett knew that no matter how much technology advances people will still chew gum the Internet won't change that Brands like double mint and Juicy Fruit will still dominate shelves 10 or 20 years from now that kind of


predictability makes a significant investment now imagine you jump into a stock just because everyone else is the price drops 30% overnight what do you do is it a bargain or a disaster if you don't truly understand the business you're just guessing Buffett calls this the circle of competence stick to what you know you don't need to be an expert in everything but venturing into unfamiliar territory just because a stock is hot is like walking into a poker game with no idea how to play


sooner or later you'll lose significance seven don't buy cigar butts imagine walking down the street and spotting a half smoked soggy cigar on the ground you pick it up and take one last puff it's free but then it's gone gross right well that's precisely how Warren Buffett used to invest early on following his mentor Ben Graham Buffett hunted for dirt cheap stocks companies so undervalued they had one last puff of profit left it worked but wasn't a strategy for enormous lasting wealth


then came Charlie Munger Who convinced Buffett to shift gears why settle for scraps when you can own a steakhouse instead of buying struggling businesses at rock bottom prices Buffett started investing in highquality companies at fair prices take Apple for example when Buffett bought in it wasn't the cheapest stock but a Powerhouse with long-term potential that investment has made birkshire Hathaway billions Buffett's new rule forget chasing cheap stocks just because they're inexpensive by


great businesses that will keep growing because real wealth comes from owning quality not Bargains and that's a wrap on Buffett's seven golden rules of investing the man didn't build his fortune on luck he followed these principles with discipline and patience and now you have them too but here's the real question which one will you apply first will you focus on long-term investing avoid the Trap of chasing cheap stocks or start sticking to businesses you understand drop your thoughts in the comments I'd love to


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