In an interview with Yahoo Finance, the Magnat revealed the key point for an investment.
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Warren Buffett He says there is a need to understand accounting to invest and this is the best advice you can give to young people who want it. “(Accounting) must become a kind of language for you,” commented the magnate Yahoo finance.
The Berkshire Hathaway CEO has taught himself the principles of this finance science and explains that people need to understand what they are reading.
He adds that investors need to develop a mindset that realizes that they are buying part of the business, not a stock that moves on a chart and shows resistance.
The 89-year-old businessman explains that you are buying part of a company and that it is a decision that you make, even if you know that you will not receive an offer in five years and that you should be happy in five years if the stock market tomorrow the store closes.
To illustrate the latter, he gave the example CokeAccording to Buffett, if you were the owner of Coca Cola and were tempted to sell it when the competition came, it makes you happy to have kept it, and when you see the business grow, you’re happy.