Warren Buffett compares buying stocks to being a farmer

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  1. This man sees opportunities like a farmer smells rain. His analogies are top notch and his views has helped shaped I and my financial advisor on making the best trade decisions.

  2. No. Being an investor is actually like being a miner. The first one to dig the mine reap the most rewards, but more risky because of unstable tunnels. When the mine has been depleted, you move on to the next mine. But sometimes, there are undiscovered tunnels and caves in that mine that the first miners missed, that way newer generation of miners can have a clear pathway and know what to expect with less risk.

  3. Exactly. It doesn't matter if the prices skyrocket. It doesn't matter if they go down. Coronavirus is not really important. Just keep those positions, think long term and let the compound interest do its magic.

  4. Such wise words. I recently picked up & read The Intelligent Investor because Buffett recommended it so highly. Bottom line is “don’t leverage too highly and buy based on book value (net tangible assets etc) not market value”.

  5. What I learnt here is that you should buy into stocks (a business) because you know and believe that that business will do well and let that define your buy/hold/sell position on the value of your stocks versus being influenced by others playing with the same or similar stocks

  6. Buffett is a great teacher and story teller. His advice is so priceless as always. A farmer will do much better by cultivating and tending his farm than bothering about the price of his farm on daily, weekly and monthly basis.

  7. It apparently looks like a legendary businessman appealing people to have faith in his country & invest in his country to sustain & help growing the economy of his country & ultimately him in the time of crisis.

    But it is totally irrelevant to compare farming with buying stocks since fundamentally these two things are different. It is misleading.

    These capitalists have intentionally restricted the definition of development over the decades to only two things
    1) economical development &
    2) technological development
    They have been imposing rather constantly hammering these definition into people's mind through such talks.

    Farming is aptly called AGRICULTURE in India because it is an integral part of culture & not only money making business.
    Indian culture has revolutionised an individual human in 5 aspects
    1) psychology 2) sociology 3) economics
    4) politics & 5) philosophy
    This is the integrated development.
    Economics is just one fifth.
    A farmer adopting this Agriculture can realise the inner bliss of the very essence of the development in all the above 5 aspects.

    Yes..money is one of the most important instrument to achieve your ultimate goal but it is not everything.
    Money could be a byproduct of farming but not the intention.

  8. Greetings from Kenya Uncle Warren!
    You my friend gave me the biggest secret of all… COMPOUNDING!

    Now I teach it to my nephews and nieces from all around the world!

  9. Learn to trade and stop listening to 'gurus'! warren buffet performance is due to luck and timing, he rode the longest bullmarket in the history of humanity by buying us stocks early on. That's it. You'll never be able to reproduce his performance, you are better off day trading and understanding how markets work rather than listing to nonesense.

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