During times of market uncertainty, it’s natural to look for guidance to calm your senses.
And there’s few better to dispense such advice than Warren Buffett.
Buffett is widely acknowledged as one of the most successful investors in the world, earning him the nickname “the Oracle of Omaha”.
The noise and volatility that has roiled the markets in the last 18 months would make most investors uncomfortable.
Here are seven useful tips you can rely on from the Oracle to help you to navigate the stock market.
1. Price is what you pay, value is what you get
Amid the noise, it’s important to remember that the value of a stock is different from the price that you paid for it.
Unfortunately, many investors tend to equate price with value.
To give an example, let’s say a company is worth $10 per share.
However, people are willing to pay just $8 to own the company as they may believe the remaining two dollars cannot be unlocked....