Warren Buffets famous investing advice.

Warren Buffett
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Warren Buffett’s investment advice is timeless. By keeping Buffett’s investment advice in mind, we can sidestep some of the common traps that damage returns and jeopardize financial goals.

Investing tips from Warren Buffet.

1. Invest in what you know…and nothing more: One of the easiest ways to make an avoidable mistake is getting involved in investments that are too complex. Just like the popular book (“Richest man in Babylon”) which says never put your money in a business you don’t understand as this will save you from losses.

2. Never compromise on business quality: While saying “no” to complicated businesses and industries is fairly straightforward, identifying high quality businesses is much more challenging.

Warren Buffett’s investment philosophy has evolved over the last 50 years to focus almost exclusively on buying high quality companies with promising long-term opportunities for continued growth.

3. Have a longterm strategy: Once a high quality business has been purchased at a reasonable price, how long should it be held?

“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.” – Warren Buffett

“Our favorite holding period is forever.” – Warren Buffett

“If the job has been correctly done when a common stock is purchased, the time to sell is almost never.” – Phil Fisher

4. Investing isn’t rocket science, but there is no “Easy Button”: Perhaps one of the greatest misconceptions about investing is that only sophisticated people can make good investments.

However, raw intelligence is arguably one of the least predictive factors of investment success.

“You don’t need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with the 130 IQ.” – Warren Buffett

“If the job has been correctly done when a common stock is purchased, the time to sell is almost never.” – Phil Fisher

Share other investment tips from Warren Buffet know with us….

Author: Austine