Warren Buffett success mantra: For 2019, here are eight investment, money-making formulas for you

Warren Buffett, CEO of Berkshire Hathaway is considered the god of investments throughout the world. When he speaks or write about money, the world acts on it. Money can never grow until it is reinvested because money attracts money. That's what Buffett believes. "When a person with money meets a person with experience, the one with experience ends up with the money and the one with money leaves with experience."This is what Warren Buffett's said on his 87th birthday when asked about his best investment advice.

Do you want to be rich and earn a living to live in luxury? Then read what Warren Buffett says investment. Here are a few tips from his sayings, which can make you rich:

1. Make investments that you understand.

Investments are like plants. The more you care, the more they grow and more they grow, more they return. Buffett says one should never put his|her hard-earned money in the investments they do not understand. It is like buying something with no use. If you understand real estate, go for it, but if you are bad with negotiations, you will end up losing your money. Therefore prior to any investment, make sure to collect enough understanding on the option and return prospects from the investment you are eyeing.

2. Portfolio diversification is not a good option.

Everybody says that one should invest in more and more options or diversify the portfolio of investments. Warren Buffett says, "When it's raining gold, put out the bucket ot the thimble." He disagrees from the fact that one should diversify investments. According to him, investing in more areas distracts the focus and you tend to lose money in the long term. If you trust your stock picks of one or two sectors, don't diversify. Though it might prove efficient during volatility, but is never a good option to get higher returns.

3. Trust yourself to be rich.

Trusting yourself before doing anything productive is a compulsory rule to follow, according to Buffett. "If you can't trust yourself, forget about making money," he says. Nothing will work for you until you believe. Nobody is perfect or has a sense about a company or business that is going to do miracles in future. So, don't believe anyone, do what your heart says. Buffett says, "I always trust my choices, though sometimes, I fail making good ones, but still believes my own guts and knowledge.

4. Invest in your knowledge.

"Read a lot, that's how you become rich," says Buffett, If you have a habit of reading a book, no matter what happens, you are on a track of success. According to Buffett, reading books by successful and rich people makes you learn a lot. So go to the library near you, or order your favourite books today in order to move on the track towards a life of luxury. He also believes that increasing your knowledge, increases your chances of understanding better and the knowledge you possess can make you rich in no time. 

5. Don't forget to follow the right news.

Follow the news related to your investments. Don't just buy or sell anything blindly. Follow the world and keep yourself updated. Buffett says "waiting for the right opportunity is good but how will you discover the right one, keeping yourself updated with all the happenings related to your investment can make you do the right with your portfolio at the right time. Imagine you purchased some equity in a business, but that business is no more legal in a particular country or government has announced its closure, if you are aware of the news, you still have chances to save your money by pulling back your funds, but if you don't, you are dead."

6. Buy stock as if you are buying that company.

People buy stocks on the basis of the returns they have given, recommendations by experts or relatives, gut feeling etc. But buying the stock should be like buying a business, believes Buffett. He says, "If you want to choose the right stock, pick a company you would love to buy". You only buy what you trust, and that is how investment into stocks should also go. Before buying any stock, no matter, how much volume you eyeing, gather more than 100 per cent information about the company under your belt. The management, financials, operations, offices, assets, debt, taxes, employee policies, products and services they offer etc.

7. Don't be a trader in the stock market.

People love making money in quick time, everybody wants to become a millionaire overnight. "There is nothing called overnight success, or shortcut to money, the longer you wait, the more you make,'' says Buffett. He believes one should only invest what he\she can hold for future, even if you are making money by trading every day, you will lose all that at one go. Share market is a risky game, In fact, every investment is risky to handle, but there is no profit without risks. One should only risk the amount he is ready to lose and wait for your money to grow. Trust your skills and let your money pile up.

8. Don't hesitate in making mistakes.

One is not learning if he is not making mistakes. Buffett says, "Don't worry, if you are making mistakes, but learn from them and don't repeat". A child never learns to walk until he\she falls and stand again, so an individual should not sit and dwell on his\her wrong decisions, in fact, should learn and correct it as soon as possible. You will never move ahead without committing mistakes. Start small, invest little and do not hesitate in making blunders. No one is perfect, the one who has climbed Mt. Everest never quit after committing mistakes.