Smart Money – 3 Pointers From Billionaire Investor Warren Buffett
When most people think of great investors, there’s one name that is going to come to everyone’s mind – Warren Buffet. Growing his company’s stock by more than one million percent since 1965, there’s no doubt in anyone’s mind that this guy knows investing.
Trying to pinpoint one single reason as to why Buffet is so successful is difficult. He’s smart, in control of his emotions and he’s hard-wired for success. Of course there are additional reasons why Buffet has become the most successful investor of all time. No, it’s not his personality, genetics or even intelligence. Buffet’s success can be summed up with a quote from the man himself, one that may already be familiar to you, “It’s far better to buy a wonderful business at a fair price than it is to buy a fair business at a wonderful price.”
So, what can we take away from this man? What can we learn from him so that we can become millionaires ourselves? Well, to help you become the next Warren, here are three pointers that he recommends:
1 Be Optimistic
If you look at just about any stock or even the Dow in general, what you’re going to notice over time is there are going to be a lot of ups and downs. Whether it was the Great Depression or the various wars in the past 100 years, there was one thing for certain and that was the Dow continued to rise. You have to remember that no matter what the United States is dealing with today, the future remains bright.
2 Be Patient
You shouldn’t enter the stock market ready to make one million dollars tomorrow. Instead, you have to understand that your investment today could take twenty years before you see a return that you’re satisfied with. You should be investing in stocks that don’t make you lose sleep as night. Buffet has held some stocks for decades such as Coca-Cola and Washington Post. As Buffet stated, “You should be somewhere where the mail was delayed for three weeks and do just fine investing.”
3 Watch your Emotions
Every day or week, there’s going to be some sort of negative news looming around. Whether it’s unexpected sales numbers or a free investment newsletter downgrading a stock, it’s important that you don’t let your emotions get in the way with your buying and selling. Buffet once said, “Investors should remember that excitement and expenses are their enemies.” He also said that if the public is greedy, you should be fearful. On the other hand, if the market is fearful, this is when you should be greedy.
Selling stocks isn’t going to be rocket science and as long as you learn from the best, there’s no reason you shouldn’t have a hard time investing and making money in stocks. Take these three pointers to heart, take action and don’t let the public sway you. By doing so, you never know if you can follow in his footsteps.
Category: Investing
