ADVERTISEMENT

Warren Buffett provides 4 investment wisdoms nobody should miss

Warren Buffet is the third richest man in the world, an investment guru and the owner of Berkshire Hathaway. The guru gives sound investment advice to everybody.

Warren Buffet

Warren Buffett has made an enviable return of 1,826,163% over the past half century, which is an average annual gain of 21.6%.

In his yearly letter to his shareholders at Berkshire Hathaway he gave these four important investment tips:

'America’s best days lie ahead'

In 2008, during the recession, while many sold their stocks, others like Buffett held on and hold most of his stock, which generated for him return rates of 200%.

ADVERTISEMENT

His investment strategy is anti-cyclical, so when markets struggle, he invests heavily and other investors are selling. And he continues to do so currently as Buffett foresees a great outlook for the US economy.

'Stocks are not risky, if long-term is the focus'

The risky features of stocks are the rises and falls. Buffet thus advises that the ups and downs should not be associated with risks but rather should be managed by building a diversified portfolio of established companies while saving for the long term.

He said the mistakes investors make that aggravate their risk exposure include active trading, inadequate diversification, high and unnecessary fees paid to managers and advisors and using loan to finance investment which destroy the joy associated with holding an investment and reaping long term returns from same.

Don’t listen to experts'

ADVERTISEMENT

The bottom-line here is that no one can accurately predict the future. He said no one can tell what could happen in the market, not even him, and that experts will only fill one with tales but not money.

It is no surprise that majority of analysts provide buy recommendations to make the stocks they monitor more popular.

'Be decisive'

On this point, he highlighted the benefits of action and cost of inactions by painting the picture of how he lost millions of dollars due to inaction. As an investor or as a person, decision making is paramount and should be done with dispatch and like the old saying goes: Procrastination is the thief of time.

Take action today!

ADVERTISEMENT

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Obama, Clinton support Biden at NYC fundraiser amid protests

Obama, Clinton support Biden at NYC fundraiser amid protests

Tinubu’s refusal to celebrate 72nd birthday marks great leadership - Rahman

Tinubu’s refusal to celebrate 72nd birthday marks great leadership - Rahman

Adamawa Police reaffirms ban on motorcycles in Yola

Adamawa Police reaffirms ban on motorcycles in Yola

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

You make bold decisions & live with consequences - Ondo Gov hails Tinubu at 72

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

170 electrical vandalism cases in 2 years, 100 charged to court - EEDC

Tinubu appoints Bello as chairman of code of conduct bureau

Tinubu appoints Bello as chairman of code of conduct bureau

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Don't curse, condemn Nigeria in your sermons - Tinubu tells clerics

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Lagos postpones eagerly anticipated Easter boat regatta indefinitely

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Third Mainland Bridge reopens in 1 week, formal ceremony later - Minister

Pulse Sports

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

Nigeria vs Mali: Has Finidi George done enough to land Super Eagles job permanently?

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

I want to emulate Keshi and win the AFCON - Finidi George shares ambitious Super Eagles dream

Michelle Alozie: I had to do it because of African referees

Michelle Alozie: I had to do it because of African referees

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

AC Milan star reveals he was named after Super Eagles legend Tijani Babangida

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Give him the job! Super Eagles fans beg NFF to make Finidi George permanent coach after Nigeria's win over Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

Super Eagles 2-1 Black Stars: Nigerians praise Iwobi, Lookman, Finidi George after friendly victory against Ghana

ADVERTISEMENT
ADVERTISEMENT