As the latest in my ‘videos on sundays’ series, I offer some advice from the man billed as the ‘greatest investor who ever lived’.
In 7 minutes you will have ALL of Warren Buffet’s secrets 😉
… maybe not, but you WILL have some insights into his life (the first three minutes) followed by some of the best investing advice that I have seen.
Warning: some of these slides flash across your screen so fast that you will have trouble following them, so pay attention to the very last two slides if you are not an expert investor:
If you are a student of investing, have a long-term view and are willing to dedicate some time and effort, take note that Warren offers exactly the opposite advice for you …
Wide diversification is only required when investors do not understand what they are doing.
… he also points to this time in history as being possibly a great time to make your fortune:
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
I see a lot of doom and gloom … I bet that Warren Buffet is gearing up for something big …
What are you doing right now?
Great advice – I am so glad you found that and shared it here.
I must have been hearing some of the things he said because while I invest in foreign stocks, I study not only the markets they’re in but also the companies and the industries. I would advise anyone not understanding the companies or the industries OR the markets (since it is not the US) to stay away and invest in something they do.
When I was new at this, I chose the “Dogs of the DOW” and just as Mr. Buffett says, they outperformed most investment advisors. I didn’t know much, but I trusted that group of 10 companies (again reading the names and studying them when I didn’t know anything).
A good book to show you how to value stocks and find ones that are underpriced is Rule # 1 Investing (named after Warren Buffet’s famous Rule # 1: Never lose money!) by Phil Town. The examples given are all US stocks (and data services to help you research them are also for US stocks) … but, there’s no reason why the principles can’t be applied to international stocks as well. AJC