posted by mark
on Thu, 08/30/2018 - 12:30
Article Link:
Warren Buffett is an incredible investor. His 50 plus year track record speaks volumes about his skills.
Do you have to be Buffett to also be successful? The answer is a resounding NO. That is not to say you can get the same returns as Buffett, but you can do very, very well by following his teachings. You don't have to be a rocket scientist to do well.
There are a number of fundamentals behind his investment success. Like sports, being strong in the fundamentals can make or break your success. If you listen closely to him, he will tell you a number "gems" behind his success.
- Invest for the long-term. We're talking 5, 10, 15 or more years.
- Minimize taxes. Holding long term insulates from the drag of taxes.
- Don't ever pay too much for a security. Buy only when you see a "sale".
- Own quality stocks with quality management. Great management is critical.
- Own stocks that have competitive advantages.
- Use and understand compounding to your advantage. Plow dividends back into investments. Time is your friend. The younger you are the better.
- Have patience and avoid behavioral biases
- Avoid debt or use it very carefully.
- Stay with stocks long-term. You'll have price volatility at times, but, over time, you will be handsomely compensated. Companies don’t change very fast compared to market prices.
- Minimize all fees and costs to enhance the compounding effect.
So many hear Buffett, but do they listen?
Be safe, be smart, be prepared, be well read and be successful!
