Warren Buffett's investment tips: Here is how you can get better returns

Wanted to venture into the stock market arena but did not know where will it take you? Well, before you take a plunge into investing into shares and the make an error, it is advisable to consider certain points. Since share markets are volatile in nature, you never know when you are with pockets full of the greens and in another second, you witness a tremendous loss. Warren Buffet is a true investor at heart and also has spoken on investing techniques and tips at length. Here are five such investing tips from the master himself

Investing in what you know

Investing in something you know is risk-free. Do not try to invest and wander into areas that you are not aware of. It is advised by Warren Buffet himself - "Never invest in a business you cannot understand." So to say, invest in companies that you know the whats and about. If you come across a potential stock but are unaware about what the stock is, simply response: pass.

Buy a stock and plan to keep it

“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.” – Warren Buffett. In other words, it is always better to hold onto the best businesses that promise you good returns in yield. Moreover, time is a friend when it comes to good stocks and if you are patient enough, you will earn a bountiful.

Investing is neither rocket science nor anyone's piece of cake

The misconception of investing in the stock market being something that is noncomprehending is false. Nonetheless, it is not an easy task either. So to say, one does not have to be a genius to invest into the market but one needs to also know that there are no set rule and steps to gain what you ideally wish for. Stock markets never have and never will work that way.

Watch This Zee Business Video

Be Fearful When Others Are Greedy

As people say, do not be the sheep that follows the flock. Instead, look elsewhere. Buffett says that the stock that is attracting investors like flies is bound to be overvalued. In place of that, look for good stocks were lesser investors have an eye on.

Undervalued stocks are valuable

Undervalued stocks have intrinsic value. Buffet suggests that it is better that one invest in a company, especially the ones which have a certain special trait that will enable it to be successful in the future. This could include technology, management to name a few.