Tactics! Tactics!! Tactics!!!
Tactics are those plans one can put in place to achieve a particular goal. For a plan to work well, there have to be some tactics put in place by the planner. It is the same in virtually every aspect of life, and the business sector is no different. The type and effectiveness of tactics might just be the difference between a successful businessman and an unsuccessful businessman. The top businessmen and investors in the world take some time to come up with the best and most suitable tactics to help them grow their businesses and investments.
To be successful in business, one has to make it a habit to study entrepreneurs. Wherever you are in business, investments, or entrepreneurship, someone has passed through that stage. It is important to note how these successful investors and businesspeople think and how they put their ideas into action to reach the top of the ladder. But when we talk about successful business people and investors, it is hard to miss the name “Warren Buffet.”
As one of the most successful investors and entrepreneurs in the world, it would do you some good to take a leaf from his book of ideas and learn what makes him such a successful investor. To get started, you can ask yourself these two questions;
- What does Warren do to make him so great?
- What will it take me as an investor to be as successful as Warren Buffet?
Well, when you look into his life, there are a lot of things he does. In this blog, we will be discussing some of those things.
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Here are Warren Buffett’s tactics on how to grow business or investments:
He believes in investing in value
According to most investors, Warren Buffet is one of the greatest value investors. Putting it in clearer terms, he prefers to invest in companies based on the values and earnings they will provide in the future. So, if you want to be a successful investor, have you thought about investing in value instead of the present state of the stock or company?
Ask yourself, what is my future earning power? Am I investing to make great returns in the future, or do I just need to get all my returns in the short run? You need to learn to put your money into a company or stock that will make you a future earner. You also need to understand that not every company has the prospect of becoming great in the future.
So it will also boil down to doing your proper research to be sure that the company you are actually investing in will give you that value in the long run. My advice to you is – Invest in future value, and you won’t be where you are now in a few years’ time.
Have guidelines and principles for investments
As we said earlier, there have to be some tactics put in place for someone to be successful in investment. Warren Buffet has his twelve tenets or guidelines for investing. Well, you do not need to follow Warren’s tenets word for word. The idea is you need to have your own guidelines for investing. It could be based on the foundation or core principles of a few great investors, but you definitely need to have yours.
Warren has never deviated from his tenet, and he is reaping the rewards handsomely. Take out a pen and paper, and make a list of the principles and values you need to make decisions. You need to have guiding principles that guide your investments. If you have friends, family, and employees, it is always good to make them have their own tenets.
Prepare to always adapt to changes
Adapting to changes is not the same as changing your principles. You need to do be able to change your thought and action processes to adapt to changing market climates and business situations. So with an already laid out set of tenets, the processes can always change. Warren buffet’s principles are as rigid as they can be, but the processes are so flexible that even with the volatility of the market and economy, his investments tend to keep growing, all thanks to his careful planning.
Write down your processes for making investments over the long term, and make sure that the plans and processes are adaptable to whatever conditions of the market. Do you have a plan to make profits, and if you do not have any, try creating one. If you fail to plan, you definitely plan to fail. So don’t just hope for success; try working toward it.
Invest in only what you understand
One of the most outstanding features of Warren Buffet is his selection of investments. Instead of investing in technology stocks that he does not understand fully, he prefers to invest in those industries he understands full well. This does not mean that he does not have a diversified portfolio. It simply means he prioritizes those businesses he understands better than those he does not.
So do you have a circle of competence? If not, start now. Operate in those areas you can dominate fully and stay out of things you do not understand fully. If you want to invest in a stock but do not understand it fully, it is okay to do some research. That way, you will be able to keep control of whatever happens in the market.
You can see that becoming as successful as Warren Buffet is not so difficult. Taking these small steps will help you bring value, focus, disciple, and success in investments.
Recommended for further reading:
- You Are a Badass: How to Stop Doubting Your Greatness and Start Living an Awesome Life
- Happy: Finding joy in every day and letting go of perfect
- Business Secrets from the Bible – Daniel Lapin
- MONEY Master the Game – Tony Robbins
- How to Win Friends and Influence People