Warren Buffett is arguably one of the best investors of all times. Here are three investing tips from the “Oracle of Omaha”.
“Never lose money.”
While even the legendary Buffett has suffered stock market losses, one key to his success is that the losses are small and infrequent compared with his larger long-lasting positions.(Please do not take this direct quote literally. There are no guarantees in investing and there is always the potential to lose money.)
“Be an investor, not a speculator.”
Speculators tend to bet on price without paying much attention to earnings or dividends. Speculators tend to be short term technical traders. On the other hand, investors tend to take the long view and expect to be paid continuously for owning an asset. This could be in the form of interest or dividends.
“Diversify, diversify, diversify.”
This advice includes owning both U.S. and International positions, stocks and bonds, multiple sectors, and non-correlated asset classes.
While we understand that each client’s investment strategy and risk tolerances are unique, I hope that these general investing tips are both of interest and value to you.
I also look forward to sharing a conversation with you, to discuss these concepts further and explore how they could apply to your investment goals and objectives.
(Credit for some of this information goes to Steve Jurich, IQ Wealth Management September 2017.)
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®