Investment (& Life) Tips From The Great Warren Buffett
What can we learn from Warren Buffett. The obvious thing that comes to mind is investment advice. I mean, he is quite possibly the greatest investor of our lifetime.With net worth at $65.9 billion it is hard to imagine a more apt person to dole out investment advice. But, surprisingly, his investment advice frequently doubles as live advice.
Advice from Warren Buffett is timelessly valuable. The Oracle from Omaha knows how to pick stocks and how to bring the thunder on revelations of old-school values.
And the best part is, not only can you make money off Buffett’s advice, it serves very well as straight-up life advice.
Don’t look for the most popular company or the current darling of the business press. Search for the undervalued stock. The one that everyone will be talking about in 10 years.
I have culled some of the best quotations from Buffett below. But you can click on the link to see all the ones that The Motley Fool felt were worth highlighting.
Buy & Hold
“Successful Investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time: You can’t produce a baby in one month by getting nine women pregnant.”
“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.”
I have always been a fan of long-term investing. No short-sighted day trading for me. It fits with my philosophy of building All Shores Mortgage as sustainable, thriving, family-run business. Warren has always been a source of inspiration in that way.
Be Ready When Others are Not
“Be fearful when others are greedy. Be greedy when others are fearful.”
“The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.”
This is one of my favorite Buffett quotes. I am in love with the strategy. The key is not to follow the wisdom of the many, but forge your own path, so you can be ready to choose the right path, regardless of popularity. One of Buffett’s best generalizations is the notion that you should be cautious when the market is spiking and aggressive when the market is running scared. But that needs to be supported by knowledge. It has to be supported by your research and your gut, in tandem.
“The difference between successful people and really successful people is that really successful people say no to almost everything.”
I think it is important to remember that every time you say yes to something, you are saying no to something else. Make sure your yeses are meaningful.
Stay Out of Debt
“I’ve seen more people fail because of liquor and leverage — leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart, you’re going to make a lot of money without borrowing.”
While it may seem hypocritical that I include this quote on a blog post for MY MORTGAGE COMPANY, let me clarify. When Buffett talks about borrowing, he likely means credit card spending sprees. While a mortgage may be debt, it usually has a much more concrete asset attached to it, as opposed to, say, your bar bills from college that are still showing up on your Visa statements.
Be smart about debt. Take on only as much as you need and look to use it to grow your net worth.
Peter Buffett, son of Warren, went into composing, following his love of music, rather than blindly following his famous dad into the family business of investing. Peter, successful in his own right, writing music for Oscar-winning films like “Dances With Wolves,” talks about staying in his adopted hometown of Milwaukee, instead of moving to Hollywood. He also had help from his dad to get started in life, but did not have an endless trust fund. Warren’s quote about the sum was, “Enough to do anything, but not enough to do nothing.”
Classic Buffett. Generous, to a point.