Warren Buffett investment strategy are simple but it takes a lot of discipline to be able to implement them all. Warren Buffet is an investing powerhouse and one of the Most Interesting Man in the World. He started investing in the stock market at the age of 11 but 99 percent of his $63 billion fortune and portfolio came after his 50th birthday.
Even if you started late, you still have an oppurtunity to earn big time on the stock market.
1. When Stock Prices Drop, Buy — Don’t Sell
“I like buying it as it goes down, and the more it goes down, the more I like to buy. … If you told me that the market was going to go down 500 points next week, I would have bought those same businesses and stocks yesterday. I don’t know how to tell what the market’s going to do. I do know how to pick out reasonable businesses to own over a long period of time.”
2. Learn How to Read Financial Statements
“Take all the accounting courses that you can find. Accounting is the language of business. … It’ll make it so much easier for years and years to come for reading financial statements, to get comfortable with it, because it is a language all of its own. Getting comfortable in a foreign language takes a little experience, a little study early on, but it pays off big later on.”
3. Focus on Saving, Not Getting Rich Quick
“Well, I think the biggest mistake is not learning the habits of saving properly early. Because saving is a habit. And then, trying to get rich quick. It’s pretty easy to get well-to-do slowly. But it’s not easy to get rich quick.”
4. Stay Away From Bitcoin
“Stay away from it. It’s a mirage, basically. … It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope Bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways and it will be. The idea that it has some huge intrinsic value is just a joke in my view.”
5. Put Your Estate in Index Funds
“My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”
6. Stop Pretending to Be an Expert
“You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick ‘no.’”
Go and apply this 6 Things Warren Buffett Says You Should Do With Your Money in 2015!
Attention: To Change Your Financial Life & Get 11 Incredible Blessings (Value: $251.50) for FREE! Including The Opportunity To Earn Passive Income Every Month! CLICK HERE!