One of the richest men in the world is mega tycoon and investor Warren Buffett. Over the years there have been countless books, magazine articles and so forth written about his skills as an investor. The blog article we’ve put together today is called from those books and articles and we believe is stuffed full of excellent investment advice. (We use it all the time, truth be told.) We’d love to say that these are our ideas but will just as gladly give them to you without taking credit as long as they help you to become a smarter investor. Enjoy.
- No matter where you are as an investor always be looking for new investment ideas and opportunities.
- Only invest in what you understand.
- Never invest in something you don’t understand completely. You can’t determine its value if you don’t understand it.
- When it is absolutely, completely obvious that the odds are in your favor it’s time to buy.
- Invest in strong, healthy businesses. They are less risky and get better results.
- Companies with strong, proven management are a good investment value.
- Following the rules above, by the cheapest businesses available.
- If you are not a patient person, become one. Patients will serve you incredibly well when investing.
- Research, read and learn about investing regularly and continuously.
- Study the great investors like Warren Buffett.
- Invest in something you’re passionate about. Very few great investors lack passion.
- Beware of relative valuations. A stock that’s cheaper than similar stocks is not always cheap.
- Before you buy a stock break down the reason you are buying it.
- Intrinsic value is not a precise figure. Using it as such is very risky.
- If there is a true risk that your capital could be lost, don’t invest.
- Search for investment situations where intrinsic value is rising.
- If you can’t figure out why the stock you are considering purchasing is such a bargain, don’t purchase it.
- Read annual reports. That’s what Warren Buffett did.
- Read the footnotes. Buffett did this too.
- Find companies that are dominant in their industry and invest in them.
- When investing, focus on where said investment will be in five years. Most people think much too short term.
- Waiting for the economy to turn around isn’t a great idea when it comes to investing.
- The only way to improve your performance is to track it and be brutally honest about your results.
- Companies that can survive and prosper in a poor economy are good investments.
- If you want to increase your performance, use checklists.
- If you think you have it all figured out, beware. Many investors who thought they did self-imploded.
- Risking what you need for what you want is a bad idea as far as investments are concerned.
- Don’t rely on your investments for cash. This is not only bad for your psyche but can cause you to make stupid, expensive mistakes
- Read and then reread Warren Buffett’s shareholder letters
These are some of the very best tips and advice that either Mr. Buffett has given or that people who have studied him have given over the years. There are others but we think these are at the top and if you can follow them to the letter you will undoubtedly become a much smarter (and much richer) investor.
Will be putting together another blog article similar to this in the near future with more excellent tips from the master so make sure to bookmark our website and come back to visit us often. See you soon.