“Hello sir, I am Harsh Rajvardhan from Bhopal; I am very interested in the share market.
About 5 years ago today, when I was 22, I had taken out a list of some stocks because I wanted to invest in them. But at that time, I was in the market.
I was afraid of ups and downs, due to which there was confusion about the investment, and no decision was reached.
But today, when I see those shares, I feel very sorry that I did not invest at that time because, in these 5 years, the price of those shares has increased by 10 – 10 times.
So my question to you is that how do you make a powerful decision to invest?
This question is not only of happiness but of millions of people, not only in investing,
We have to make decisions at every turn of life, and maximum people fail here, which is why most people are not living such a life as they wanted.
To make the decision correct, today I will tell you the 10/10/10 Rule of Sir Warren Buffett, which will help you in your decision-making process and create wealth instantly.
So are you ready to know the 10/10/10 Rule of Warren Buffett, sir?
You cannot make any progress in any field without taking a decision.
Whether that field is related to your personal life or professional life, you have to take the decision.
But this one more question comes, is it enough to make a decision? The answer is “no,”
for progress; you have to take the right decision as well as take fast decision.
Only then will you be able to run the fastest in the race of life.
Usually, whenever a common person takes a decision, both the right and wrong output of that decision can be found.
But if a successful and experienced person takes a decision, then there is a high probability that the correct output will come out of that decision.
When it comes to the stock market, whether you will earn or lose your money depends only on your decision; the best example of this is “trading.”
Every day when you start trading with the idea of earning money, then at the same time, millions of people start trading with you with the same thinking; in the same time frame when you are trading, many lose, and many more make a profit.
You will also be making money someday, and someday you will also lose. Many times even after making a profit due to Greed & fairness, you also incur huge losses.
Close your eyes once and think whether the game of profit loss is any of the decisions. Depends on something else? Not at all, according to me.
And you should also understand this thing that all this is a game of decision, so think how much profit you can make in the market if you learn to take the right decision.
Although this is such a skill that develops along with experience, you can also learn many ethics of making decisions from some successful people,
Let us now discuss Warren Buffet Sir’s 10/10/10 Rule so that you can make the biggest decision in just a few minutes.
Warren Buffett’s 10/10/10 Rule
According to this Rule, before taking any decision, you should pay attention to 3 things –
- How will I feel about my decision in 10 minutes?
- 2ndHow will I feel about my decision in 10 months?
- How will I feel about my decision in 10 years?
Now suppose you are planning to invest, and do your research and find out 2 stocks which can prove to be good for the long term.
For example, let’s say one became ITC and the other became Tata Power.
The current situation is that you are finding both the shares good, that’s why you selected only these two out of 5000 shares,
but nowhere you have a problem that you should choose any one of these two for the long term. Unable to make a decision.
You are caught in the illusion that ITC can grow well and TATA power too.
But you cannot clear where you can get more returns, so in such a situation, apply Buffett’s 10/10/10 Rule on both the stocks at once and see the result.
Let us now take you to a chart where we will apply the 10/10/10 Rule on both stocks to see the result.
|1) How will I feel about my decision in 10 minutes?||By buying it, we have to keep patience for at least 10 years.||It can give good profit even in the coming 2-3 years.|
|2) How will I feel about my decision in 10 months?||There may be very little growth in it.||It is more likely that from 10 months ITC will give more return than Tata|
|3)How will I feel about my decision in 10 years?||I can get a manifold return on my investment after 10 years.||It seems to me that after 10 years it will give less return than Tata Power.|
By following these three rules, I realized that if I keep the money, then in the long term, Tata Power will give a good return from ITC.
Because there is going to be a tremendous demand for Electric Vehicles in the coming years, and Tata Power seems to be leading this sector right now.
While the growth of ITC may be normal or it may be that due to the arrival of a competitor, there may be a little more brake on their growth,
but Tata Power will grow because it is working keeping in view the future I am working for 10 years. I can keep the money.
So I would prefer to invest in TATA power. Similarly, you can make a good investment plan for yourself by using this rule.
This was just a matter of an example. Similarly, in real life trading, investing, or in personal life too,
you can use this formula to make the right decision in a very short time. And can increase the speed of your growth.