How to Become a Millionaire by Investing - 5 Investment Strategies of Warren Buffett

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How to Become a Millionaire by Investing - 5 Investment Strategies of Warren Buffett
By Darl Fuwong

Stock investment is one of the fastest ways to become a millionaire. Warren Buffett is a good example of a billion-dollar investor. To be a successful investor like Warren Buffet, you have to first understand his beliefs towards the market and his investment strategies.

1. The market is irrational

Warren Buffett believes the market is irrational. It is often driven by greed and fear. Do you know people who buy when the market has gone up and sell when the market came down. Or are you one of them? If you have done your research and understand the true value of the stocks you have bought, you will feel secured and will no longer be worried when the prices go up and down.

2. No one can predict the market consistently

Take a moment to recall, have you heard stories about someone who spend money to buy mysterious trading systems, hoping to make good profits but only to be disappointed? Average investors try to predict the market's next move. When they cannot predict, they give money to the so-called experts who claim they can. Warren Buffett believes that successful investment has nothing to do with the ability to predict. Master investors know that no one can predict the market consistently.

3. Huge returns with little risk

While many people talk about "high risk, high return", Warren Buffett believes in huge returns with little risk. In fact, Warren Buffett is a very risk adverse investor. His first rule for investment is "Never lose money" and his second rule is "Never forget the first rule". People think of investment as high risk because they have not learnt how to do it properly. Just like driving, don't you think it is risky to drive on the road if you haven't learnt how to drive properly? If you know the right way to do it, you can reduce the risk significantly.

4. Invest in few great companies

Most investors are taught to "diversify, diversify, diversify". Therefore, they bought into many mutual funds and keep small holdings in many stocks. Warren Buffett thinks diversification is for people who don't know better. By investing across the market, you will go up and down with the market. The key to outperform the market is to identify great companies and focus your investments in them.

5. Make decisions base on strict criteria

Many investors make decisions based on emotions. They are tempted when they learn of hot tips or see their friends making quick profits. Then they sell immediately when they see stock price tumble the next day. Successful investors follow a set of strict criteria to determine when to buy and sell. Investment criteria are rules that you follow to decide what stocks to buy, when to buy and after buying, when to sell. Here are some examples: the company must have increasing sales and profit for the last 5 years, return of equity must be more than 15%, long-term debt must be less then 3 times of net profit, etc.

Do you base your decisions on investment criteria like the successful investors? If you have not set your investment criteria, it is the most urgent thing you must do before your next move. Learning the proper way to invest can help you avoid the pain of losing your hard-earned money and saves you from worrying when the market crashes again. Check out http://secretsofselfmademillionaires.info/. Not only will you learn how to become a millionaire by investing, you will also discover how to create multiple income streams and build a million-dollar net worth, starting from scratch.

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How to Be a Self-Made Millionaire - 3 Important Steps That All Wealth and Abundance Creators Follow

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How to Be a Self-Made Millionaire - 3 Important Steps That All Wealth and Abundance Creators Follow

By Darl Fuwong

Before you read this article, let me ask you: Why do you want to be a self-made millionaire?

Are you feeling fed up and unappreciated at work? Is your demanding job depriving you of the time you wish to spend with your loved ones? Or do you simply wish to provide a more comfortable home for your newborn baby? You need to know why you want to be a self made millionaire if you are serious about it. People who don't even bother to understand themselves are not going to succeed.

Now, take a moment to think about what you are going to do if you are a millionaire. Do you have a dream of traveling around the world freely without worrying about money? Are you thinking of helping your favorite charity or fight for the cause you passionately believe in? Maybe you hope to empower the people you care about, show them that they too, can live a better life like you?

If you are ready with your answers, here are the 3 most important steps that all wealth and abundance creators follow to gain true financial freedom:

1. Develop the Millionaire Mindset

All self made millionaires know they have the potentials to create wealth. If you don't think you have what it takes to be a wealth creator, you are wasting your time reading this article now. Self made millionaires do not hesitate when opportunity knocks and never let self doubts get into their way. Once you have the millionaire mindset, you will begin to see money making opportunities everywhere.

2. Set your Financial Goals

Instead of going after money blindly, determine how much you need to be financially free and set a date to achieve it. Do not be afraid to do so. Studies show that people who set goals are more likely to succeed than those who don't. The strategies to achieve $1,000,000 within 1 year are very different from if you give yourself 10 years. Only with clear financial goals in mind, you will have better ideas where to focus your time and effort.

3. Understand the Rules of Money

Money is the most important subject in life. The schools taught us how to work for money but never teach us how to make money work for us. When you understand the rules of money, you can create multiple streams of income and grow your money at phenomenal returns. Whether you decide to work for others or set up your own business, you can leverage on your time and value to increase your earning power. At the same time, you have to manage your money wisely and keep an eye on your expenses. Continue to invest in your net worth. Accumulate money-generating assets and reduce money-sucking liabilities.

Now, the essential steps to true financial freedom are really no secrets. Many people know them but not everyone is a millionaire. The real secret lies in knowing how to carry out these steps.

How to develop the millionaire mindset? What are the rules of money? How to leverage on time and value to increase earning power? If you have these burning questions, take a peek at the secrets of self made millionaires. A real life multi-millionaire who started from scratch and achieved financial abundance at age 26 is sharing his experience and showing the step-by-step to financial success at http://www.secretsofselfmademillionaires.info. How can you afford not to learn his secrets?

Article Source: http://EzineArticles.com/?expert=Darl_Fuwong
http://EzineArticles.com/?How-to-Be-a-Self-Made-Millionaire---3-Important-Steps-That-All-Wealth-and-Abundance-Creators-Follow&id=2889345

You Have Only 100 Days to Achieve Your Goals By 2009

Have you set your goals at the begining of the year? It is September 2009 now. 8 months has passed. We have approximately 100 days left. Did you...

1. achieve your goals and exceed your expectations?

2. barely accomplish what you have set to out to achieve?

3. fall below your desired outcome?

Simply look at the results of your action to date will tell you if you have been successful in achieving the goals you set earlier this year. Regardless of the positions you are in, you can take the remaining 100 days in 2009 as a "now or never" opportunity to end the year with a high note. If you have fallen short of expectations, use it as a final chance at redemption.

Are You Up For the Challenge?

Here's short video clip that will help you resolve to make the last quarter of the year, the best ever.



The best time to make changes is NOW... not tomorrow, not next week, not next month.
Take up the "100 Day Challenge" to achieve your best goals for 2009.

Click on the icon below to register for the 100 Day Challenge.




[Update: 16 September]:

Here's an article that provides more details on "100 Day Challenge - Start Fast Finish Strong" and the coach for the program, Gary Ryan Blair.