The simplest idea of investing is buying something when the price is low and selling it when the price goes up. For the stock market, some traders try to do this on a daily basis. But the most successful investor of all time, Warren Buffett, thinks people should take a long approach, which might mean investing money and not touching it for decades. When you’re ready to invest, find companies that you believe in and that won’t be easily challenged or changed in the next few years. Buy some stock and be patient while the value rises. As the world’s economy grows, so will your investments—but only if you’ve made them. Remember, you only live once, and you want to live for a long time, and you want to live well.
Which of these statements reflects the most simple investing idea?
A
Take risks.
B
Buy low, and sell high.
C
Buy often, and sell often.
D
Never sell.
Answer (1)
The simplest investing concept is reflected in statement B. Buy low, and sell high.Option B directly echoes the passage's explicit statement that "The simplest idea of investing is buying something when the price is low and selling it when the price goes up."Purchase something when it's on sale.When the price increases, sell it.That's how you turn a profit.
