- Develop good habits: What’s true for dieting is also true of investing: when starting out, it’s best to focus less on the end goal than on developing good habits. “The biggest mistake is not learning the habit of saving & investing properly”.
- Think long term: Never mind get rich quick: work on getting rich slowly, which is far more realistic. As Buffett once explained, “No matter how great the talent or efforts, some things just take time. You can’t produce a baby in one month by getting nine women pregnant.”
- Ignore market forecasts: Hand in hand with Buffett’s. Nobody knows where the markets are heading in short term. “The only value of stock forecasters is to make fortune tellers look good”.
- Be humble: Another important lesson that investors can learn from Warren Buffet is that they probably know less than they think they do. “What counts for most people in investing, is not how much they know, but rather how realistically they define what they don’t know”
- Keep It Simple: Successful investing is far simpler than many investment professionals make it look. As Buffett once put it, “You only have to do a very thing right, so long as you don’t do too many things wrong”.
- Stay Calm: The final and perhaps the most crucial is to stay calm when others around you are overly anxious or excited. Don’t be your own worst enemy. “The most important quality for an investor is temperament, not intellect.”
Trusted Financial Adviser To Families For Years