Pieces of Investment Advice from Warren Buffett

 Invest in what you know…and nothing more.

One of the easiest ways to make an avoidable mistake is getting involved in investments that are overly complex.“Never invest in a business you cannot understand.” – Warren

Never compromise on business quality

While saying “no” to complicated businesses and industries is fairly straightforward, identifying high quality businesses is much more challenging.

When you buy a stock, plan to hold it forever

Once a high quality business has been purchased at a reasonable price, how long should it be hel
If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.” – Warren BuffettOur favorite holding period is forever.” – Warren

Diversification can be dangerous

In my view, individual investors gain most of the benefits of diversification when they own between 20 and 60 stocks across a number of different industries.

Simply put, Warren Buffett invests with conviction behind his best ideas and realizes that the market rarely offers up great companies at reasonable prices.
You will notice that our major equity holdings are relatively few.

Most news is noise, not news

There is no shortage of financial news hitting my inbox each day. While I am a notorious headline reader, I brush off almost all of the information pushed my wayRemember that the stock market is a manic depressive.” – Warren Buffett

As investors, we need to ask ourselves if a news item truly impacts our company’s long-term earnings power.

Investing isn’t rocket science, but there is no “Easy Button”

Perhaps one of the greatest misconceptions about investing is that only sophisticated people can successfully pick stocks.Anyone proclaiming to possess such a system for the sake of drumming up business is either very naive or no better than a snake oil salesman in my book. Beware of self-proclaimed “gurus” selling you a hands-off, rules-based system to investing. If such a system actually existed, the owner certainly wouldn’t have a need to sell books or subscriptions.

Know the difference between price and value

Stock prices are pushed at us nonstop. For some reason, investors love to fixate on ticker quotes running across the screen.Investors need to distinguish between price and value, concentrating their efforts on high quality companies trading at the most reasonable prices today.

The best moves are usually boring

Investing in the stock market is not a path to get rich quickly.Rather than try to find the next major winner in an emerging industry, it is often better to invest in companies that have already proven their worth.

 Low-cost index funds are sensible for most investors 

Did you know that most investors fail to beat the market – and often by a wide margin?

Only listen to those you know and trust

Throughout his shareholder letters and occasional interviews, Warren Buffett emphasizes the importance of only investing in trustworthy, competent management teams.https://www.simplysafedividends.com/intelligent-income/posts/37-top-10-pieces-of-investment-advice-from-warren-buffett