This is how an investor could start buying shares as a billionaire: for £ 800

The super investor Warren Buffett is now a billionaire many times. But its beginnings of the stock market were very humble. Buffett school saved money from a paper round to start buying shares.

So, while £ 800 might not sound much for an investor to enter the stock market for the first time, I think it is wide. It is enough to diversify and also means that making rates and costs could be proportionally lower than if investing a lower amount, provided that the investor pays attention to how to minimize such rates, as explained below.

They could even apply part of Buffett's accumulated wisdom while they do.

Weighing both sides of an investment case

For example, a common mistake when people begin to buy shares is to focus on how much money they could earn if they perform brilliantly. That is understandable. People invest to try to develop wealth.

But it is important, from the first day, pay so much attention to the risks of a potential investment in how it could work if things are going well.

Disseminate money and risk

That also helps explain why multimillionaire investors such as Buffett do not put all their eggs in a basket. They diversify in different actions.

With £ 800, an investor could easily do the same.

Think about buying a little business

Another common mistake when people start buying shares is to look only at the price of the action. Has it collapsed? Does it seem to be turning to turn? Is it much lower than a previous maximum?

The price of shares is definitely important. But not in isolation. It matters in context. What is an inverter who pays in relation to what they receive in return?

Understanding that requires an understanding of the business itself and if it is attractive. Buffett thinks not in terms of buying a role with a company name, but rather a participation in a business. Then evaluate the attractiveness of the business itself.

What makes a big business?

As an example, consider Buffett's greatest participation: Apple (Nasdaq: AAPL). I think this has the characteristics of a big business. The potential and real customer market is huge and it is likely to stay that way.

Thanks to its unique brand and technology, Apple has a price power. That allows you to make juicy profit margins. Its user ecosystem means that customers require a lot to leave Apple and start their digital lives again in another type of phone.

That said, there are risks. For example, Apple phones are expensive. In a weak economy, I think that increasingly sophisticated but cheaper phones of Chinese brands could steal Apple market share.

However, in general, Apple is a company in which I would invest happily (and in the past). But I have no plans to start buying shares in the technological giant.

Because? Shares price, pure and simple.

Even a big business can be a rotten investment if one pays it for more.

Invest in a profitable way

The billionaires like Buffett became partly rich when the costs closely monitor. They can eat investment yields.

Therefore, an investor, even with only £ 800, should not start buying shares before finding a account of treatment or actions and actions that adapt to their individual needs.