7 Investing Tips From Warren Buffett

Warren Buffett “doesn’t . . . encourage the average individual investor to try to mimic his success,” but rather . . . to do exactly the opposite,” according to a recent Yahoo Finance post. The piece compiles 7 investment tips drawn from Buffet’s “more popular insights on investing,” which are reflected in the quotes from Buffett below.

  1. “Cash is a bad investment over time. But you always want to have enough so that nobody else can determine your future essentially.”
  1. Most people should “buy a cheap index fund, and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb.”
  1. “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.”
  1. If you’re determined to pick stocks, don’t buy into a business you don’t understand.
  1. If picking stocks, “think about the competition, the competitive position both of the industry and the specific location,” of the underlying business, as well as “the person they have running it and all that.”
  1. “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for ten minutes”
  1. “To be a successful investor you must divorce yourself from the fears and greed of the people around you, although it is almost impossible.”