The stock market is made up of exchanges, like the New York Stock Exchange and the Nasdaq. Stocks are listed on a specific exchange, which brings buyers and sellers together and acts as a market for the shares of those stocks.
And there are many famous stock investors like John Tempelton , Philip Fisher, Warren Buffett, Benjamin Graham, Peter Lynch, George Soros, Jack Bogle, Carl Icahn, Bill Ackman, Peter Thiel , Ray Dalio, Prince Alwaleed and others in world who are become rich by investing, so we can know the tips they are using :
Investing is a long game
“Now if they think they can dance in and out [of the market] and buy and sell stocks, they ought to head for Las Vegas. I mean, they can’t do that,” Buffett told “Squawk Box” October 2014. “But what they can do is determinate that there’s a number of solid American businesses, a great number of them, and if you own a cross section of them and particularly if you buy them over time, you basically can’t lose.”
Investing is a long game, he says.
“I know what markets are going to do over a long period of time: They’re going to go up. But in terms of what’s going to happen in a day or a week or a month or a year even, I’ve never felt that I knew it and I’ve never felt that was important,” Buffett told Becky Quick on “Squawk Box” in February 2016.
″I will say that in 10 or 20 or 30 years, I think stocks will be a lot higher than they are now.”
Buffett has also likened buying stocks to owning more tangible assets. “If you own stocks like you’d own a farm or apartment house, you don’t get a quote on those every day or every week,” Buffett told “Squawk Box.” So, too, should it be when you’re buying a share of a company.
To protect your money, buy stocks in various different kinds of companies and spread your purchases out over time.
“The best thing with stocks, actually, is to buy them consistently over time,” Buffett told “Squawk Box” in February 2017. “You want to spread the risk as far as the specific companies you’re in by owning a diversified group, and you diversify over time by buying this month, next month, the year after, the year after, the year after.”
Stocks are now generally better than bonds
“If you save money, you can buy bonds, you can buy a farm, you can buy an apartment/house — or you can buy a part of an American business,” Buffett said in February. “And if you buy a 10-year bond now, you’re paying over 40 times earnings for something whose earnings can’t grow. You compare that to buying equities, good businesses, I don’t think there’s any comparison.”
You can’t time the market
“You’re making a terrible mistake if you stay out of a game that you think is going to be very good over time because you think you can pick a better time to enter it,” he told “Squawk Box” in February 2017.
There’s no room to be emotional
“Some people should not own stocks at all because they just get too upset with price fluctuations. If you’re gonna do dumb things because your stock goes down, you shouldn’t own a stock at all,” said Buffett told “Squawk Box” in February 2018.
By comparison, “If you buy your house at $20,000 and somebody comes along the next day and says, ’I’ll pay you $15,000, you don’t sell it because the quote’s [$15,000],” added. “Some people are not actually emotionally or psychologically fit to own stocks, but I think that more of them would be,” Buffett said, if they were more educated on what they were really buying, which is part of a business.