Most people try to invest and make money but they often end up suffering losses as they make the same mistakes over and over again. Wannabe investors should try to learn and emulate the mind sets of rich people such as Bill Gates, Mark Zuckerberg, Michael Dell and Warren Buffet. Let us focus on Warren Buffet, who has been described as the best investor on the planet. These are some of the investment tips he sticks to:

1. Developer your investment mindset

Not all people are business oriented but we can improve our business minds by reading business related books. Warren Buffet invests a lot of his time studying business-related books.

2. Practicing patience in your investments

Whenever Buffett buys a stock, he buys into the company. This means he doesn’t sell the stock at every market boom or bust. He believes in the companies that he invests in for the long term and holds on to stocks until he longer believes or sees value in these companies. One of Buffett’s celebrated quotes, which illustrates his inclination for long-haul investments is, “Regardless of how awesome the ability or endeavors, a few things simply require significant investment. You can’t create a child in one month by getting nine ladies pregnant.”

3. Prioritize value

Sometimes, the amount we spend on something and the value we get from our purchase don’t relate. Buffett believes that investors need to understand that markets are driven by supply and demand and that buying into a company with solid growth during market down-turns are great opportunities to gain value. Buy a good stock at a great price.

4. Check your emotions when investing

Human emotions influence the market considerably more than any monetary model. Emotions can make people hopeful for something that has never happened or rarely occur. Buffett has recommended that controlling your emotions is considerably more imperative than your IQ. According to him, “Accomplishment in investing doesn’t associate with IQ. What you require is the demeanor to control the urges that cause other individuals harm in investing”.

5. Invest in what you are knowledgeable and passionate about

Buffett exhorts that you “never put resources into a business you don’t get.” Don’t put money into companies whose business you don’t understand.

If you don’t have adequate information about a company, it is much more difficult to understand how a company will perform in the long run and foresee what the company will become a couple of years down the line.

6. Live below your means

Despite a net worth of $87 billion dollars, Buffett lives in a shockingly unassuming home. He purchased his current home in Omaha, Nebraska for $31,500 in 1958 and, today, he calls it the 3rd best investment he’s ever made. Rather than wasting money to live lavishly, Buffett lives frugally and has reaped the benefits.

7. Save first then spend the rest

People tend to pay bills first, spend the rest, and save for last. According to Buffett, this is the wrong approach. Buffet prescribes that you should put aside a set amount of money each month as savings first, then pay your bills, then spend whatever is left over after paying bills.

8. Remember your roots

When he was in middle school, Buffett found a job as a paperboy delivering The Washington Post. He expanded that early activity into a deep-rooted association with the daily paper. Years later, his company, Berkshire Hathaway, became The Washington Posts’ biggest investor. Remember where you came from, your values, and you may discover unique opportunities for great investments.