The decline of the stock market swallowed all the money? So understand the way of long -term investment in the stock market from Warren Buffett

Last updated:January 29, 2025, 11:31 IST

Due to the latest decline in the stock market, 40 percent of Gen Z (GEN Z) is almost over. Warren Buffett, the world’s big investor, has described the only rule that can be made rich by following. But after 1996 …Read more

Mistakes in investment are the cause of loss.

Warren Buffett, one of the world’s greatest investors, has recently issued a shocking warning. According to him, 40 percent of Gen Z (GEN Z )’s assets are almost over due to the decline in the recent market. This situation arose because young investors are making a serious mistake. Buffett says that the problem is not in investing, but in the way of investing. He had seen the same mistake during the dot-com bubble, when young investors did not understand the difference between betting and investment. Gen Z means generation born between 1997 in 2012.

According to Buffett, betting means that you are investing money in the hope that someone else will buy it at a higher price from you. The same thing is happening on social media today. Investment has become a kind of game with the arrival of commission-free trading apps. Investors of Zen Zee (Zen Z) do 25% more trading than average investors. The main reason for this is “passion to become rich quickly”. But Buffett warns that it is not an investment, but gambling. And in gambling, the house always wins.

The true meaning of investment explained, which people do not even know
Real investment, according to Buffett, it is that you invest money in the hope that you will get returns from that property in future. It is not about following a trend or earning a short-term profit, but about being the owner of a business. Buffett believes that along with choosing the right companies, it is important to be patient. His favorite holding period is – “forever”. Why? Because they know that giving time in the market, it is better to take the market time.

The track record of Buffett is proof of this. From 1965 to 2020, Berkshire Hathaway’s Book Value recorded an annual growth of 19 percent, while S&P 500 gave only 10.2 percent returns. He says that the new generation should also adopt a similar strategy. According to him, investment should be started with index funds, such as low-cost S&P 500 funds. Also, all dividends should re -invest and automatically automatically invest. Buffett says, “The more you trade, the less you will earn.” This is the only rule to make money in the stock market.

If you save money, someone should learn from buffett
Buffett’s lifestyle also reflects his investment principles. They still live in the same house which they bought in 1958 for $ 31,500. Then $ 100 used to be around 500 rupees. Meaning that Buffett bought the house at that time for about 1 lakh 50 thousand rupees. They have breakfast with coupons in McDonald’s. He believes that the best investment is to invest in itself, and it requires capital. Therefore, they always control their expenses.

Another important principle of buffett is to invest in your knowledge. They spend 80 percent of their day reading in reading. They do not take time to see share prices or follow trends, but learn about different businesses. They believe that no stock should be purchased just because it is in trend, but should buy because you understand that business. Even if the market is closed for 10 years, you should still feel happy to hold that company.

Entertainment is not investment
Understanding and adopting these principles of buffett is very important for Jane Zee. In today’s era, where social media and trading apps have made investment a kind of entertainment, Buffett’s advice becomes even more relevant. He says that earning money does not mean to be rich quickly, but not to be poor gradually. This is the mantra that makes Buffet’s investment philosophy beyond time.

How the formula of Buffett will apply to India
In the Indian context, this principle becomes even more important. There is a large population of youth in India, which is taking new steps in the investment world. Trends like Cryptocurrency, Penny Stocks and Intrade Trading have attracted youth. But Buffett advises stay away from these things and pay attention to long -term investment. Investing in index funds and blue-chip companies can also be a safe and smart option in the Indian market.

Buffett’s message is clear- investment is a marathon, not sprint. It requires patience, discipline and knowledge. If Jane Zee adopts this philosophy, he can not only get his lost property back, but can also create a safe and prosperous life in the future.