Investing

Warren Buffet’s financial tips

 

 

 

Warren Buffet often said that our eyes are in front because it is more important to look ahead than to look back. If you have not been so successful in investing, you must be looking back all the time and dare not look at the future profit growth of a company to invest which is the most important catalyst to move share price.

Moreover, you might be a constant complainer.

Constant complainers

Constant Complainers fall into three categories, at least one of which you’re bound to identify with in some way:

  1. Attention seekers:These people seek positive attention through negative complaints and tend to complain that their lives are very poor when compared to others. Unfortunately, those that complain for attention often create the opposite effect to the one they desire, because people around them don’t have the energy for them and their thoughts. In many cases, people prefer to distance themselves from attention-seeking complainers.
  2. Chronic complainers:People of this kind live in a constant cycle of complaints, feeling a lot of self-pity and seeking the pity of others. Psychologists argue that this behavior is compulsive, and chronic complainers reach a point in which it is difficult for them to resist the desire to complain and be perceived as victims who need help.
  3. Complainers with low emotional intelligence:Unlike the other two types of complainers, people that fall into this group have no desire for the opinions or feelings of the people around them. If you come across people of this kind, the thing they are most interested in is simply complaining to someone who will listen to them, and their reaction is less important.

Lastly, if you want to be a successful investor, you must have confidence.

People who are self-confident do not compare themselves to others all the time. They rely first and foremost on their own minds and abilities and do not blame their environment for their emotional state. Instead of losing themselves in relationships or workplaces, people who have high self-confidence build and maintain their relationships based on their own personal plans and dreams – they know what they want to achieve and make sure they do so. When you feel confident in your personality and in the decisions you make, those around you will be impressed by your management and decisiveness.

My observation:

I notice there are fewer readers in i3investor, making senseless and abusive commentaries of my articles which is a very good sign. It simply means that they have benefitted from reading my articles, especially Hengyuan which is currently on auto-driving gear upward.

However, I would like to advise readers to follow Warren Buffet’s tip on the importance of looking ahead and not the back.

You must remember the financial report is only showing the historical performance and not the future performance of the company.

In fact, I am not an accountant and I can hardly understand the balance sheet. But I have more than 50 years of experience in doing business. As a result, I am not worried if I see a company reporting poor earning for 1 or 2 quarters, if the company has good future profit growth. When a company reports poor profit, small short-term shareholders will dump their holdings as soon as possible and most investors would not want to buy the share even it is cheap.

Experts in Financial and Technical analysis will surely not buy the share even the price has fallen to rock bottom level. That is why research has shown that the performance of FA & TA specialists is not so spectacular. Their performance is just slightly better than average investors.

As I said before, FA & TA can often mislead investors. To be a successful investor, one must look at the company’s business and its future profit growth prospect which is the most powerful catalyst to move share price.

 

 

 

 

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