6 investing tips from Warren Buffett to start the New Year on a positive note
Live MintAs the New Year has kicked off on a positive note with market indices touching all time highs, most investors are curious to explore investing opportunities from their closed ones and acquaintances, while some try to make sense of the volatility of what Benjamin Graham referred to as ‘Mr market’. But of course, if they told everybody what a simple game it was, 90 percent of the income of the people that were speaking would disappear.” So, let us understand what key investing tips the Oracle of Omaha has given to the investors. Importance of retained earnings: Buffett, in his 2019 letter to shareholders, quoted Edgar Lawrence Smith's 1924 book ‘Common Stocks as Long Term Investments’ which was reviewed by John Maynard Keynes who wrote that well-managed industrial companies do not distribute to the shareholders the whole of their earned profits. Risk evaluation: He also wrote, in the letter in 2019, about disciplined risk evaluation which is the daily focus of his company's insurance managers.