Warren Buffett has not become billions of billions without reason.

Hakim spent her contracts in investment and building his wealth, and learned many lessons along the way. Fortunately for other investors, he was ready to share many of these lessons for free.

As an investor for a limited average, it may be easy to look at billionaire and is believed to be working in a different world.

In fact, though, one of the reasons why many investors talk about Warren Buffett is that some lessons of his long investment career can be related to investors even in a very small budget.

Below are three of the ideas that Buffett uses that I apply even when you only invest a small amount.

Knowing what you know – and stick to it

Warren Buffett has repeatedly talked about the importance of staying within the efficiency circle as an investor.

His point of view is that it does not matter a wide or narrow range of that circle, but staying within it makes it likely that one has the knowledge necessary to assess a possible investment.

Otherwise – putting money in something you do not understand – does not invest but just speculation, in my opinion.

Focus on a long -term competitive feature

Companies come and companies go. Some, however, here in the long run.

It may be difficult to know what companies can adhere to well. When trying to do this, Warren Buffett searches for a competitive advantage or what he calls a “trench” (because it can help to repel competitors the way the trench can help in a medieval castle to see potential invaders).

To see this concept at work, think about its investments in coca cola (NYSE: Ko).

It works in a market where the demand is large and it is likely to remain this way. People will always thirst and want to put out their thirst.

However, as with many markets where there is a large demand, there is also great competition.

So Coca-Cola spent contracts to build and enhance a series of competitive advantages. Its brand, with the support of heavy ads, is one. The ownership formula for its pioneering product is another.

But the Coca-Cola trench deepens more than just the brand and the product. Global Reach gives economics, while its comprehensive distribution and mobilization system will be difficult if not impossible for competitors to repeat it.

Pavite is a smart investor always enough to consider risks as well as possible rewards. The Coca-Cola Product wallet can be witnessed as the demand is declining as health consumers turn away from diabetic drinks.

But this is part of the competitive advantages point: We hope that the company will help even in a risky environment and do a good job.

Preserving feelings in their place

Buffett uses emotional language, and often talks about the companies he loves.

But when Push to Shou comes, the investor has repeatedly proved billionaires ready to make difficult rational business decisions.

His focus as an investor is building wealth and can mean making difficult decisions. Emotionally, you can feel difficult – but necessary.