Stock market today: How to navigate in this bull trend — explained with 5 Warren Buffett quotes | Mint
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Business News/ Markets / Stock Markets/  Stock market today: How to navigate in this bull trend — explained with 5 Warren Buffett quotes
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Stock market today: How to navigate in this bull trend — explained with 5 Warren Buffett quotes

Stock market today: Warren Buffett believes that a smart investor becomes cautious when whole market is greedy

Stock market today: Warrent Buffett believes that good stock means a share available at discounted price against its intrinsic value. (Photo: Bloomberg)Premium
Stock market today: Warrent Buffett believes that good stock means a share available at discounted price against its intrinsic value. (Photo: Bloomberg)

Stock market today: Cheering BJP's win in Rajasthan, Chhattisgarh and Madhya Pradesh assembly elections, Indian stock market climbed to a new peak for second straight session. Nifty 50 index today surged yet another high of 20,834 levels, logging over 700 points gain in three straight sessions. Bank Nifty ascended to a new peak of 47,218 levels, rising over 2700 points in this time. BSE Sensex also hit a new high of 69,336 levels, appreciating near 2500 points in last three days.

According to Warren Buffett, when bull market trend comes, a retail investor should become cautious instead of turning greedy.  As stock market today is at record high, chances of returns are limited, so we list out five Warren Buffett quotes that may help you make more money in this bull market.

5 Warren Buffett tips for bull market investors

1] Cautious approach: Warren Buffett believes that a smart investor becomes cautious when whole market is greedy. Generally, it has been found that stock market investors become greedy in bull market and pump maximum money when most indices and stocks are at record high. However, as per the American billionnaire, a smart investor turns cautious as chances of higher returns are limited in a bull market.

2] Secret of finding good stocks: The Berkshire Hathaway CEO believes that good company doesn't mean good investment option. Warren Buffett is of the opinion that good time to buy a stock is to compare the current price and its intrinsic value. 

Also Read: HCC shares jump over 9% to hit 52-week high on sale of Swiss arm for 928 crore

If a stock is available at discounted price against its intrinsic value, then only one should invest in the business. So, its premium available against the stock rather bull or bear market trends, which matter most while investing. In current bull trend, if a quality stock is available at discounted price against its intrinsic value, then it is a good stock to buy even when the market is in bull trend.

3] Buy, hold and forget: Warren Buffett once said that stock market investor can make money by holding a stock as long as one can. Ace investor said that ‘all there is to investing is picking good stocks at good times’ and staying with them as long as they remain good companies.

4] When to book profit: It is often found that a retail investor books profit in a bull market because they are getting good amount of return on their money. However, if we go by Warren Buffet's strategy, one should sell a stock only when one's investment thesis breaks. 

So, a long term investor should book profit when current price and intrinsic value of the stock comes close or say valuation gap between intrinsic value and current price of the stock gets bridged. So, those mulling to square off their position in current bull market, this Warren Buffet's advice would help them take a final call before booking profit in their stock holding.

5] Don't lose money: Warren Buffeett believes that first rule of stock market investment is 'don't lose money' and second rule is to ‘remember the first rule.’

So, a long term investor needs to know that one can sit under the shade only when one allows a plant to turn a tree. So, holding a stock for long, sticking with one's conviction and adding more on big fall are some of the signs of a smart investor that Warren Buffett believes.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 05 Dec 2023, 11:19 AM IST
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