Investing Tips from Warren Buffett

Like in other fields, there are people who become influential because of their success and accomplishments, if not for their deep insights about their craft. Technology has Steve Jobs and Bill Gates, with Mark Zuckerberg tailing close behind. Show business has Michael Jackson, Eminem, and other remarkable, talented individuals. Basketball has Michael Jordan and Lebron James. In the world of investing, you must learn from the experts. Here are some investing tips from Warren Buffett—one of the greatest investors in the world.

You Are Your Best Investment

Warren Buffett said:

“The best investment you can make is in your own abilities. Anything you can do to develop your own abilities or business is likely to be more productive.”

That’s a very self-empowering quote from the legend. What makes it more powerful is that it’s universal. It’s true in every sense of the word.

Put yourself as your top priority. If you have a business, focus on that and make money out of it as you aspire to make money out of the stock market or the investing world.

Make yourself your most valuable asset.

Overcome Fear

The world of investing is full of surprises. It’s not for the faint-hearted. It doesn’t allow you to be overconfident about your trades and investments. According to Buffett, the hardest thing is to trust your decisions.

But that doesn’t mean that your fears should enslave you. It is difficult, but it is nonetheless possible to conquer your fears and build your confidence on your investments.

In order to do this, you have to learn continuously. Because even if you think you already know a lot, the investing world will not run out of surprises and tricks.

Invest In What You Know

This is the most oft-quoted and most remembered advice from the great Buffett. You should not invest in something you’re not fully familiar with.

Buffett tells us his trick. He has first to understand the business before investing in its stock. How does the company make money? What are the factors that affect the industry of that company? If he does not understand the business after scrutinizing it, he moves on to assess another business.

If you have to rely on forecasts and predictions, Buffett says you should find another business that offers more clarity. Come to think of it, better safe than sorry.

Focus Only On Important News

This is another greatly helpful tip from the expert. Buffett says that you shouldn’t put a lot of weight to everything you read on the headlines or news. Make sure that you pick the information that matters.

It’s easy to see that many investors often think too much about the events that they read or hear. Most of the time, many of these things do not have a significant or long term impact on their investments.

In simpler words, don’t overreact.

Our Advice

That’s already a lot of help you got there. But it won’t hurt if we add our own touch to help you further. Commit yourself. That’s the best way to become your own expert in the world of investing. Strive for success and never stop learning. There will always be something to learn, and even Buffett cannot disprove that.