Warren Buffett is regarded as one of the most successful investors of all time and attributes his success to abiding by a few essential investment principles.
Here’s a look at some of the tried and true investment advices from the legendary investor who earned the title of "Oracle of Omaha" thanks to his ability to predict winning investments. The advices summarized in this article was given by Buffett in various interviews on CNBC and Berkshire Hathaway shareholder meetings.
- Invest in low cost index funds
To build up savings for retirement, Buffett provides a simple tip: consistently buy a cheap index fund, deeming this strategy the most sensible overall. - Stay on Course
As the market fluctuates, it’s easy to panic and be tempted to sell your holdings during dips. But Buffett advises against it: the Oracle of Omaha underlines the importance of continuing to buy even in critical market situations, if you have faith in the company and in the market in which you are investing in the long term. - Don’t bet on individual stocks
Buffett advises against the practice of stock picking: instead of trying to identify the "right" company and focus only on it, he argues for the importance of buying various stocks both coherently and economically. - Pay attention to fees
Buffett preaches the benefits of low-cost index funds and warns investors to pay attention to fees when choosing where to invest. In fact, he does not believe that it is worth paying high management fees, as "costs really matter in investments" and obviously impact the final return. - Start ASAP
According to the Oracle of Omaha, the sooner you can get into the game, the better – if you haven’t started learning and training yet, start now! According to Buffett, in fact, the strategy to achieve one’s goals is "start very young or live to be very old". Obviously, since it is not possible to control the second case, it is more practical and easier to choose when to start investing as soon as possible in expanding one’s knowledge and skills. - Do your research
During the 1999 shareholders meeting, Buffett advised investors to focus on gaining sound knowledge and once you do, don’t let the opinions of others dissuade you from doing what you think is best. - Keep a long term view
In his 2014 letter to Berkshire Hathaway shareholders, Buffett explained the importance of holding a long-term view - even decades long - especially during market downturns. Indeed, price declines are not important in this view and investors should keep their focus on achieving significant gains in purchasing power over their investment life. - Invest in yourself
At Berkshire Hathaway’s 2022 annual meeting of shareholders, Buffett said that, especially during times of inflation, the best strategy is to invest in yourself and excellent at what you do. In fact, whatever skill you have, it cannot be taken away from you and it is not taxed.
Original article published on Money.it Italy 2023-01-25 15:56:19. Original title: I migliori consigli sugli investimenti di Warren Buffett
