Today I am going to share with you some investing tips by Warren Buffett.
Number one. Invest in low cost index funds. Warren Buffett says, “Consistently buy an S N P 500 low cost index fund.”
Number two. Do not panic and stay the course. It is normal for the market to swing up, down or sideways. It is easy to panic and you may want to panic sell during the down market. But Buffett cautions investors against this. He says, “Keep buying through thick and thin, and especially through thin.”
Number three. Do not bet on individual stocks. Buffett says, “The trick is not to pick the right company. The trick is to essentially buy all the big companies through the S N P 500 and to do it consistently, and to do it in a very very low-cost way. You do not want to ever get the impression that you can pick stocks.”
Number four. Be aware of fees when choosing where to invest. Buffett says, “Costs really matter in investments. If returns are going to be 7 or 8 percent and you are paying 1 percent for fees, that makes an enormous difference in how much money you’re going to have in retirement.” He also says that high management fees are not worthwhile.
Number five. Start early. Buffett believes the earlier you can invest, the better.
Number six. Do your own research. Buffett advises to “learn what you know and what you don’t.” And when you have done your research, be confident and don’t let other people’s opinions dissuade you from doing what you believe is best.
Number seven. Have a long term view. Buffett says that it is crucial to have a long term view, especially during market downswings. “For the great majority of investors, however, who can, and should, invest with a multi decade horizon, quotational declines are unimportant”, Buffett writes.
Number eight. Invest in yourself. Buffett says that especially during inflation times, you are your best investment. “The best investment by far is anything that develops yourself, and it’s not taxed at all.” He says.
I hope this video helps you in being one step closer to your financial goals.
Reference: https://finance.yahoo.com/news/8-genius-investing-tips-warren-120011793.html
