Daily Money Minute

Fotolia_54867638_XS_7“Our favourite holding period is forever.” ~Warren Buffett

An excellent way to succeed is to look at successful people, learn from them and copy their approach. If that approach works for them then it will probably work for you too. When it comes to investing, Warren Buffett is as good a role model as you’re likely to find anywhere. He is second to no one when it comes to making money from investing. His point here is an important one too. If you want to make serious money from investing in stocks and shares then constant buying and selling is not the right approach. He likes to buy income streams you can depend on and then hold them, reinvesting the dividends to compound returns over time. His aim is to buy solid, well managed companies at the right price with healthy, dependable dividends. If the dividend cheques keep coming in on a regular basis then he doesn’t have to worry about short term volatility in the market. In short; he can sleep at night safe in the knowledge that the magic of compounding is doing all the hard work for him.

© Roy Sutton and Mann Island Media Limited 2013. All Rights Reserved.

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