How to become rich: You too can become next Warren Buffet, just follow these smart investment tips from ace money guru

How to become a billionaire: Global investment guru Warren Buffett knows where to invest and how to earn billions. He has over the years discussed almost all the topics related to investing, either through one of his letters to shareholders or in an interview or articles. His discussions form a reservoir of information that one can take as investment advice. The man who has invested in Indian firm Paytm is known to have benefited many across the world. Although he has invested in many companies, if you look at five key big investments he has made, you would be surprised to know that in these he kept on investing and in some of these he poured money for over 25 years. In the beginning, he framed certain formula which he still follows to earn big amount. If you follow those golden rules of investment, you can also earn a lot through the stock market. 

Here are a few investment tips from Warren Buffett:-

Detailed research before investing

According to Warren Buffett, prior to making an investment, you must go for fundamental research and then start your investment in a concentrated fashion. Therefore, prior to making an investment, you need to chalk out a plan and then have the patience to wait.

A punch card with only 20 holes - Decoded here

His part of strategy says that your investment should be like having a punch card with only 20 holes, each representing one investment that an investor could make over his whole lifetime. Thus, one should go for a diversified approach in one's investments rather than taking the risk for your whole amount either in debt or in equity investments. 

Go for value, never run after the price

He, therefore, opines that one should go for value, and never run after price because you would take ages to make your value. He argued that the essence of value investing is buying stocks at less than their intrinsic value. 

Invest in time

Since Warren Buffett spent a huge amount of time understanding and evaluating a company's management. Therefore, it can be said that he invested in time while others invest in money. He gives great significance to time, but how much time you have to spare for something or for work is the management that contributes to making one achieve greater heights. 

Don't depend on merely one source of income

Buffett also advises that one should not depend on merely one source of income, even if it may be your job. Rather, one should make effort to create other sources of income. He thinks if you keep on buying such things that you actually don't need, then a time will come when you would have to think even for buying necessary things.