7 Investment Tips From One of the Richest Men in the World

by Fern Alix LaRocca CFP® EA · 0 comments

I am a big fan of Warren Buffett- but not always. Sometimes it seems like his investment tips are out of touch and just when I want to think of him as an old bag who isn’t investing with the times- he pulls out a one two punch and shows everyone how it’s done right.

Besides, he has an annual shareholder report that makes me laugh every time, and yes, I am a shareholder. But it doesn’t matter if you have invested in Berkshire Hathaway or not, here are some of the best investing tips everyone should live buy:

1. Understand what you own. Some people take this too literally. Mr. Buffett didn’t have a clue about technology until he met Mr. Gates and now he is a big tech fan. Word to the wise- when you don’t know, partner with someone who does.

2. Don’t buy when everyone else is buying. So difficult to do but very rewarding when done.

3. Buy when everyone else is selling. This crash was the latest big opportunity to buy more. Did you?

4. Buy value. He doesn’t ever buy on the hunch that a company is going to grow. He buys stock in companies that already have a lot of value but aren’t priced high to reflect that value.

5. Stay liquid. If you have all your chips in, you can’t make anymore bets, and you can’t take advantage of opportunities as they come up. Keep cash available to invest.

6. Don’t get swayed by the next “potential” Apple. Growth and fame does not mean profit.

7. Be a long term player. Even though you may experience lower returns than the overall market, if you believe in your positions and stick it out you will find consistent positive returns over a longer period.

Investing tips to put on your wall every time you want to buy or sell.

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