Everyone knows that Warren Buffett is one of the most successful investors in the world. People often wonder how he has achieved so much success. If you also want to make a lot of money in the long run, then these 5 simple but powerful formulas of his can prove to be very useful for you.

1- Never stop learning
Warren Buffett says that investing in yourself is the most important. In such a situation, learn something new every day, whether from books, observation or from the market. He believes that only those who never stop learning are successful.

2- Understand first, then invest
According to Warren Buffett, investing money in something that you do not understand is the biggest risk. He says that do not trust anyone's advice, but trust your research and only then invest money anywhere.

3- Choose quality stocks
Often people run after cheap shares. Warren Buffett says that buying good shares at the right price does not run after cheap shares. He says that only companies with a strong foundation give better returns in the long run.

4- Don't run after every opportunity

Many people start running after every opportunity. Warren Buffett believes that one should not say yes to everything. Even if less investment is made, it is important to invest money wisely, this is the key to success.

5- Always think long term

Warren Buffett says that keeping shares forever is his favorite thing. He believes that the magic of compounding will work only if you stay. This is one thing that is a favorite of almost every investor because you get the benefit of compounding only in the long run.

Know the power of compounding too.

Compounding means compounding interest, which is also called compound interest. Under this, you also get interest on the interest of your investment. Due to this, your money grows rapidly.

Let's understand with an example.
Suppose you deposited Rs 1 lakh in the first year, on which you got a return of 10 percent i.e. Rs 10,000. Now next year you will get 10 percent return on the entire Rs 1.10 lakh. In this way, your amount will keep increasing along with the interest and you will keep getting interest on it.

Keep saving
Every month you should save a part of your income. This will start accumulating extra money with you. Later you can use this money as per your need.

Control expenses
Keep an eye on your expenses and control them. Make a budget every month and spend accordingly.

Invest the remaining money
When money is left even after expenses, invest it. Invest in the right place, so that you get good returns. Do research before investing money anywhere.

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