Warren Buffett’s Berkshire Hathaway hits $1 trillion in market cap: 5 key money lessons investors can learn from him

If you are a new investor and looking for some sound investing advice, there are dime a dozen available in the books, journals and the social media. There are only a few like Warren Buffett whose money lessons are not only valuable but also timeless

Vimal Chander Joshi
Published29 Aug 2024, 12:23 PM IST
Warren Buffet’s firm Berkshire Hathaway became the first non-tech US company to cross $1 trillion in market capitalisation on Wednesday
Warren Buffet’s firm Berkshire Hathaway became the first non-tech US company to cross $1 trillion in market capitalisation on Wednesday

Warren Buffet’s firm Berkshire Hathaway became the first non-tech US company to cross $1 trillion in market capitalisation on Wednesday. Shares rose as much as 0.8 per cent to push the company’s market capitalisation above the trillion-dollar mark for the first time.

The rally this year has outpaced the gains posted by S&P 500, the benchmark index of US markets just as S&P BSE Sensex for Indian markets. It is worth recalling that Berkshire Hathaway early this month sold nearly half its stake in Apple, offloading nearly 50 per cent of the shares, leading to a rise in the firm's cash holdings to nearly $280 billion.

Also Read | Warren Buffett details Berkshire’s Apple, Chevron and Capital One sales while also buying more Chubb

These are the money lessons which certainly played their part in helping Berkshire achieve a $1 trillion market cap.

5 key money lessons shared by Warren Buffett

I. Power of a moat: Warren Buffett is known for investing in companies which have an economic moat. His viewpoint is that you should invest for a long term and buy companies you don't want to sell. He once stated that you should buy companies which even a fool can run because someday a fool will.

II. Investing is simple: Although it takes anyone a long time to master a skill including trading, he asserts that investing is pretty simple and unnecessarily complicated by some.

He says that there are some fundamental rules which one should follow and investors should simply stick to them to ace the markets.

Also Read | Angry Young Men: Money lessons from Salim-Javed’s cinematic legacy

IIIQuestion your decision of investing: Warren Buffett is known for asking the right questions before deciding to invest in a stock.

He is of the view that investors should learn to question his decision of every investment and stock. By doing this, you will be able to make right investing choices.

IV: Ignore the noise: Warren often said that investors should overlook the noise and invest objectively. So, it is advisable to stay invested regardless of what others are saying.

Warren Buffett’s mentor Benjamin Graham referred to the market prices as the point of view of a person called Mr Market. Everyday, he comes up with a price for your holdings which may be widely off the mark.

Also Read | 5 stocks and key lessons learnt from the Big Bull - Rakesh Jhunjhunwala

V. It is all about the psychology of investing: Warren Buffett often said investing is about managing emotions. He once said that investors should become greedy when others are fearful, and fearful when others are greedy.

In other words, when there is a bull run, it is recommended to be fearful since a correction may follow soon and when everyone else is selling, it is recommended to be greedy and buy stock at an attractive price.

 

Catch all the Instant Personal Loan, Business Loan, Business News, Money news, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:29 Aug 2024, 12:23 PM IST
Business NewsMoneyPersonal FinanceWarren Buffett’s Berkshire Hathaway hits $1 trillion in market cap: 5 key money lessons investors can learn from him

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    168.30
    03:29 PM | 30 SEP 2024
    1.8 (1.08%)

    Bharat Petroleum Corporation share price

    369.30
    03:29 PM | 30 SEP 2024
    2 (0.54%)

    Zee Entertainment Enterprises share price

    137.50
    03:29 PM | 30 SEP 2024
    1.6 (1.18%)

    NTPC share price

    443.00
    03:29 PM | 30 SEP 2024
    5.45 (1.25%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Vijaya Diagnostic Centre share price

    958.65
    03:29 PM | 30 SEP 2024
    77.5 (8.8%)

    Astrazeneca Pharma India share price

    7,775.00
    03:29 PM | 30 SEP 2024
    589.35 (8.2%)

    JM Financial share price

    151.40
    03:29 PM | 30 SEP 2024
    8.65 (6.06%)

    Hitachi Energy India share price

    14,342.20
    03:29 PM | 30 SEP 2024
    703.8 (5.16%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,405.00-10.00
      Chennai
      77,411.00-10.00
      Delhi
      77,563.00-10.00
      Kolkata
      77,415.00-10.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.98/L0.23
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Money

        HomeMarketsloanPremiumMint Shorts