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Messages - shibli

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ROI - Return on Investment / Warren Buffet's advice on Investment
« on: March 24, 2018, 04:55:20 PM »
1. Diversification isn't always a good idea
Many good investors stress the importance of diversification. But Warren Buffett tends to disagree with the idea.

Buffett says that diversification is for people who don't know much about investing. An experienced investor should choose stocks on a long-term basis and should have faith on his/her investments.

Some investors diversify their portfolios because they are afraid that any one stock might sink their entire portfolio; but, while doing so, it becomes much harder to keep track of the current events impacting each company. So, by diversifying, they might reduce the volatility of their portfolio, but at the same time they reduce their focus on individual investments.

Buffett waits for opportunities to buy good stocks, and when those opportunities come his way, he takes full advantage. According to Buffett, "When it's raining gold, put out the bucket not the thimble."

2. Invest in yourself first
"The best investment you can make is in your own abilities. Anything you can do to develop your own abilities or business is likely to be more productive."

Warren Buffett says that the best investment one can make is on his/her own abilities. Most people are not going to make most of their money from the stock market. They're going to make it from their careers. So put yourself first.

Buffett's partner Charlie Munger had a similar thought. Munger's secret to success: sell yourself an hour each day, and use that hour to make yourself better.

3. Trust yourself to be a successful investor
Buffett says that the hardest thing is to trust your investment decisions. You always think that others are right and you are wrong. Instead, you need to study and believe in yourself.

To be successful, you need to overcome the fear and not pay attention to what others are telling you. Accumulate knowledge and make investment decisions on your own to stand separate from the crown and be a winner.

4. Only make investments that you understand
Warren Buffett says that many people think quite a bit before making any investment - and sometimes think TOO much.

Buffett cautions that you should never invest in businesses that you don't fully understand.

He says that if before he invests in the stock of a company, he has to first understand how the company makes money and the main drivers that impact its industry in no more than 10 minutes. If he's not able to understand it in 10 minutes, he moves on to evaluate another company on this basis.

Most people can't predict the next fashion trend among teenagers or whether or not a medicine will be successful in the market. Even if if you had more data than anyone else, it's still impossible to predict the future with 100% accuracy.

In situations that rely on an accurate forecast of the future, Buffett advises not to invest. If it's complex for you, just look for other businesses to invest in.

Buffet once said that out of about 10,000+ publicly-traded firms, he would like to invest in only a few hundred companies - before even taking valuation into account!

5. Make sure you choose the right news to focus on
One of the best investment tips from Warren Buffett is to not put too much stock (no pun intended) into each and every news headline that you see.

Buffett believes in the 99-1 rule. Most investors take actions based on 1% of the financial news they consume. Doing so, they quickly sell their stocks whenever bad news comes up - e.g. a company's revenues have fallen by 10%. If the company in this particular example has been in business for, say, 100 years, then Buffett says that it's definitely capable of withstanding such events. In other words, people often tend to overreact.

6. Buying a stock of a company is buying a part of a business
Imagine you're buying an ownership stake in the convenience store around the corner from your house. Automatically you'll think about the competition, suppliers, prices, etc. You'll have to think both about the specific location as well as its competitive position in the market.

Similarly, while buying stocks, you need to think about all these things - just as the people running the business do.

When you buy a stock, you're not just buying a piece of paper or a ticker symbol. Buying the stock of a company is buying an ownership stake in a BUSINESS.

Leadership Story / Who is a real entrepreneur?
« on: March 20, 2018, 02:11:34 PM »
An entrepreneur has to be a good listener. If you don't listen, you are going to lose empathy. If you don't have empathy, you are not a leader..

Buzz Marketing / Re: What is Buzz marketing
« on: March 20, 2018, 02:08:40 PM »
Marketing without long-term objectives and consistency is useless marketing.

Mentoring / Business Decision Making
« on: March 20, 2018, 02:03:28 PM »
Many business leaders take decisions based on their instinct and perception. Those who always think are right are sometimes can be wrong.
Without going into the depth analysis, taking decision on the spur of the moment is a business disease called business myopia..that is, having short term vision of the situation.

Innovation & Creativity / Different Concepts of Marketing
« on: February 26, 2018, 06:38:19 PM »
Production Concept
Consumers and customers love to buy those products that are available and fairly affordable. This concept is one of the oldest concepts of Marketing management that guide sellers.

Companies taking this concept run the risk of focusing too narrowly on their own operations and losing sight of the real objective.

Management focuses on improving production and distribution efficiency. In some cases the production concept is still a useful concept.

Product Concept
Consumers and customers will buy those products that offer the best in quality, performance and features.

Here Marketing strategies focus on making continuous product improvements.

Selling Concept
Customers and consumers will not buy enough of the company's products unless they take huge promotion effort.

Here the marketer focuses on creating sales rather than on building long-term, profitable customer relationships.

In other words;

The target of the company is to sell what the company wants rather than what the market wants. Such aggressive selling program carries very high risks.

Marketing Concept
The marketing concept holds identifying customers needs and wants and satisfying them by delivering superior value and making lasting, profitable relationship and thus achieving the company's goals and objectives. 

Societal Marketing Concept
It is sustainable marketing and environmentally responsible marketing that meets the present needs of consumers and businesses while meeting the needs of the society without destroying its environment.

It puts the Human welfare on top before profits and satisfying the wants.

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