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Here are 7 tips and advices for investors from Warren Buffett’s annual letter to Berkshire shareholders

Updated : February 25, 2019 09:49 PM IST

In a letter to shareholders explaining the annual business performance of Berkshire Hathaway, veteran investor Warren Buffett gives away some of the best bits of advice for budding investors. Here are some hand-picked quotes, which we feel, every investor must take note of:

Buffett said that as investors, we must keep the companies which are credible in hand.
Buffett said that as investors, we must keep the companies which are credible in hand. "Truly good businesses are exceptionally hard to find. Selling any you are lucky enough to own makes no sense at all,” he wrote. (File photo: Reuters)
Berkshire advised when the annual report of a company is released,
Berkshire advised when the annual report of a company is released, "Focus on operating earnings, paying little attention to gains or losses of any variety." (stock image)
Buffett reminded investors to be rational before taking a decision:
Buffett reminded investors to be rational before taking a decision: "Rational people don’t risk what they have and need for what they don’t have and don’t need." (File photo: Reuters)
In value investing, Buffett reminds us that the share price does not always reflect the underlying business fundamentals.
In value investing, Buffett reminds us that the share price does not always reflect the underlying business fundamentals. "Over time, investment performance converges with business performance," he wrote. (File Photo: Reuters)
Buffett reminded us that we should not be concerned about the volatile stock prices.
Buffett reminded us that we should not be concerned about the volatile stock prices. "Charlie and I have no idea as to how stocks will behave next week or next year. Predictions of that sort have never been a part of our activities," he wrote. (File photo: Reuters)
Buffett advised that one must never be short of cash during difficult financial situations. 
Buffett advised that one must never be short of cash during difficult financial situations. "I will never risk getting caught short of cash,” he wrote.
On share repurchases, Buffett said that one must not buy overpriced shares.
On share repurchases, Buffett said that one must not buy overpriced shares. "Blindly buying an overpriced stock is value-destructive, a fact lost on many promotional or ever-optimistic CEOs," he wrote. (File photo: Reuters)
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