Advice From Big Investors For Investing Money. Investing money is a science in itself. There are countless investment tips for small investors. Savings book, fixed-term deposits, overnight cash, stocks, ETFs – every form of financial investment has its advantages and disadvantages, which are carefully examined. But what strategies are the star investors pursuing who have made a fortune with their investments? Below are the most popular tips and wisdom for ambitious investors.
Benjamin Graham is considered to be the founding father of “value investing” – an investment strategy in which the investor only buys securities from companies with a high and at the same time undervalued intrinsic economic value. So, according to Graham, an investor must determine the actual cost of a security and then buy it at a much lower price.
Warren Buffett is currently the fourth richest person in the world. He was a student of Ben Graham, and so for him, the “intrinsic value” is the essential thing to choose stocks correctly. Buffett has made his fortune hard and smart and shares some investing tips with interested investors during his public appearances.
TIPS FROM WARREN BUFFETT
Tip 1: Investors should prefer companies with high profits and high dividend payouts. A wise investor only invests in companies that “even an absolute idiot” can run – because one day that could happen.
Tip 2: “It is much better to buy a great company at a mediocre price than a mediocre company at a great price.”
Larry Silverstein is one of the most successful real estate tycoons. He showed how much money you can make by buying and renovating cheap real estate.
Tip: Most of them do not have the necessary financial means to become owners of real estate themselves and to increase their value through renovation measures. Silverstein had asked for capital from his father’s clients, who owned a brokerage office in a low part of Manhattan. Ordinary investors should, under no circumstances, take this risk. But they can also benefit from real estate in other ways: With the advent of real estate crowd investing, many private investors can raise a large amount, each with small amounts, which is necessary for the financing or renovation of a real estate project.
George Soros is known for his instinct for macroeconomic developments. He became known when he bet on the devaluation of the British pound in September 1992 and won $ 1 billion.
Tip: Soros ‘Strategy gets by without the typical statistics, mathematical and economic indicators. He enters into a philosophical discussion with the markets, so to speak, and quickly withdraws if he lacks the right arguments. Soros’ style is not easy to copy and involves increased risks.
Peter Lynch began his career as an intern at Fidelity Investments after working as a caddy for the President of Fidelity at a golf club. Lynch’s philosophy is as simple as it is successful:
TIPS FROM PETER LYNCH
Tip 1: As an investor, buy stocks that you understand, stick with those stocks, and reap the rewards in the future. But that means you need to take a lot of time to understand each store in your portfolio. You should therefore not diversify so widely, i.e. not have a portfolio that is so broadly diversified that you no longer know every company in the portfolio inside out.
Tip 2: Do not react to short-term sentiments in the market – even if the temptation is great. But, it is a low percentage that you will be able to precisely time short-term market movements or use macroeconomic forecasts for the timing of investments.
Tip 3: Buy small and medium-sized companies, as these often offer the best growth prospects.
Carl Icahn temporarily worked as “Special Advisor to the President on Regulatory Reform” for Donald Trump until he resigned from this post in August 2017 on his initiative. He is known as a corporate raider – in German also corporate looter or “grasshopper” – and for cracking down on his investments. Financial investors like Icahn acquire majority stakes in companies and then sell them on at a profit or break them up. While a value investor like Warren Buffett leaves the operational work in the companies in which he invests entirely to management, Icahn is all too happy to interfere.
Advice From Big Investors For Investing Money