Not all of us have the open opportunities that Pavite performs. But below the trilogy is one of the things that helped him build a wealth I think any investor can choose to start – today.

1. Avoid what you do not understand correctly

Of course, it is possible for a person to put money in the shares of a company while knowing anything about it and still earns the money.

But this does not invest and may not be until he can speculate – it is closer to gambling, in my opinion. While some of these shots may turn positively, many of them do not.

Warren Buffett – who sees a lottery ticket as an ineffective use of his money – he definitely does no Do that.

He adheres to the business that he feels comfortable. This makes it easier for him to assess how to attract the company’s commercial prospects and its current share price.

Simply avoid arrows that they do not understand properly can help the investor make less expensive mistakes.

2. Reinvesting profits along the way

Another method that the temporary investor can build their wealth over time is not to spend the profits of the profits they earn along the way. Instead, re -investing it generates more capital to work in buying shares.

This simple but strong technique is known as the vehicle.

This explains why Warren Buffett Company Berkshire Hathaway The shareholders do not pay profits although they are very profitable. Buffett prefers to assemble the company’s profits, using them to purchase more companies and shares.

3. Focus your resources on what you think is your best thought

It is important for the investor to remain diverse. Of course, a long -term smart market participant like Buffett is thus.

But although the risks should spread, spreading them widely can harm the results. Publishing money through 50 shares will lead to less returns from spreading through only 10 better performances.

The investor’s average investment avoids the focus of his resources on the most profitable opportunities, which enhances the total returns. Of course, while this is a theory good, in practice, no one knows early what will be the best performance investments.

The share that I think investors should think is the one that Warren Buffett used to own: Diago (LSE: DGE).

Diaageo’s share price has decreased by a third over the past five years. While his annual profit distributions are increasing in novice, this decrease in the share price is not.

However, this means that Diaageo stocks can now be purchased much cheaper than before (something I benefited from to add some to my wallet).

Warren Buffett loves the distinctive firm brands that give the company pricing the company-Diaageo has many of them, including them Johnny Walker to Guinness. He also loves an installed business model, which Diagu is very profitable.

Why, then, the share decreased a lot?

Short -term risks include a weak economy that harms prominent drinks. Long -term risks include alcohol consumption rates, especially among young generations.

However, it is still balanced, I still think that Diaageo’s full potential is not reflected in the price of its current share.