Investing like Warren Buffett: Tips and Techniques

Investing Tips and TechniquesWould you like to know more about investing and money dear reader? Maybe you’re looking for some investing tips and techniques?

Perhaps you’re always short of money and possibly in debt?

Well it doesn’t really have to be that way. You do know that don’t you?

You could improve your financial situation but you’ll need to start learning about money and how it works and how you can make it work for you.

In today’s post you’ll find some observations about money and investing and you’ll find an interesting video from the world’s greatest investor Warren Buffett.

Warren Buffett has become a very wealthy man through investing and he has consistently been one of the most successful investors of all time.

It’s always worth listening to successful people, so I can recommend you watch the embedded video below because I’m confident you’ll find it useful.

1. The Importance of Money

When it comes to sustaining life, money is not the most important thing but after oxygen and water few things matters more.

Certainly you need enough to get by but you also need to put something aside for a rainy day because one day it will rain, of that you can be sure.

Putting something aside for your old age too would be a wise thing to do.

Wealth creation matters and if you are to build wealth successfully you must learn how to manage and invest your money wisely.

2. The Importance of Investing

Creating wealth is easier said than done of course.

It starts with making sure you put at least some money aside each month.

Pay yourself first by putting away say 10% of your income each time you get paid.

Make that a habit and you won’t miss it.

As cash starts to build into a decent sum then you need to ensure that you get a decent return in order for the compounding effect to work its magic.

Over time you will be amazed at how your wealth will grow if you invest wisely.

3. How to Invest

Maybe you’re still unsure as to how you go about it?

Well that’s natural, so don’t worry.

If you don’t know how to do something, look around for someone who is already doing it successfully and copy what they do.

Certainly there are some excellent examples of investors who you could adopt as a role model.

One of the world’s most successful investors is the great Warren Buffett, otherwise known as the Sage of Omaha. Have you heard of him?

If you haven’t, I can tell you that he has created so much wealth through his investing skills that he is one of the richest men in the world.

The video included here offers some investing tips and techniques,

It illustrates how Buffett invests and how you might emulate his success. This is a useful video and it is worth your time, if your aim is to develop your investing skills.

4. Investing Tips and Techniques

5. Buy some reference books on investing

One video cannot tell you all there is to know about investing of course.

Developing your investing skills will take time and patience, building your knowledge as you go.

Nevertheless there are plenty of good books on the subject and you would be wise to establish your own personal reference library on the subject.

One book I can recommend is from the Financial Times series.

Like everything associated with the Financial Times, the FT Guide to Saving and Investing for Retirement: The Definitive Handbook to Securing Your Financial Future will provide you with sound advice on all aspects of saving and investing, particularly with respect to your long term goal of making sure you can enjoy a comfortable retirement.

I can recommend this book and it’s available from Amazon. Buy it here.

DISCLOSURE: 

This website is an Amazon affiliate. Should you click on any of the links included in the text above and you then make a purchase, you should be aware that this website will receive a small commission. However there will be no additional charge to you in making that purchase. Nevertheless these commissions do serve to cover the cost of maintaining this site, so you’ll be helping to ensure that this resource can remain available free of charge to readers. Your understanding is truly appreciated dear reader. Thank you.

Please share this post with your friends:

Did you find this article interesting and useful?

If so, then please share it on social media with your friends. When you share, everyone wins.

So please share it now. If you do I will be ever so grateful and you’ll be helping a keen blogger reach a wider audience.

Thank you.

Other articles you might also find interesting:

© Roy Joseph Sutton and Mann Island Media Limited 2019. All Rights Reserved.

3 of the less obvious investment principles and concepts

Investment Principles and ConceptsIf you’re working on your financial education dear reader then you’re probably seeking to better understand all of the investment principles and concepts that successful investors use to create wealth.

If so, today I offer you three of the less obvious investment principles and concepts that you should always bear in mind:-

1. Fear is your friend:

As anyone with an interest in investing will recognise, financial markets by can be volatile and the extremes can be a challenge for even the most experienced investors. Volatility goes with the territory.

There are times when it will all feel like a bit of a roller coaster ride.

So if you’re going to profit from being an investor then you do need to have your wits about you. Feeling fearful occasionally goes with the territory too.

Fear is a natural emotion which keeps us sharp and it keeps us focused when our personal security could be at risk. So fear is a good thing. It serves to protect us against threats to our safety. Fear is our friend.

Even when it comes to your financial safety, fear is your friend too.

In troubled times we must be careful not to react in haste but remember that our instincts can be a powerful guide to when action is necessary.

That said, with investment, those times when others are truly fearful can be an excellent buy opportunity for the savvy investor. When people are in a state of panic they react with emotion rather than intelligent thought. And often they overreact.

Experience tells us that calm will always return to the market eventually and the savvy investor will have picked up some bargains amongst all the drama.

As Baron Rothschild once said, the time to buy is when there’s blood on the streets.

2. It’s never different this time:

Whenever there’s a speculative financial bubble, how many times do you hear people say, it’s different this time? Somehow they think that the laws of financial gravity can suddenly be defied.

From property bubbles to the dotcom bubble people were keen to tell us all that those old laws of finance no longer applied.

For some reason people start believing that prices can keep going up and up and up without any reference to the point at which prices were no longer consistent with anything close to a sensible valuation.

If we could go back to the days of the tulip bubble and the South Sea bubble, I’m sure we’d hear people saying it’s different this time.

The nature of a speculative bubble is always the same.

Something becomes fashionable and the price of that perceived asset starts to skyrocket, everyone goes crazy and people suddenly feel they must get in on the opportunity before they miss out.

The really savvy investors get in early on the opportunity, then they recognize what’s happening, they see the asset becoming over-priced and they recognise that if they are to turn a profit then they need to get out quickly. Once that happens, sentiment starts to turn; early movers make a decent profit and others lose their shirts.

The harsh reality of financial investing is that when you spot a bandwagon on which to climb you’ve already missed the boat. I apologise for the mixed metaphor but remember this; it’s never different this time with a financial bubble.

Irrational exuberance drives prices beyond the point at which they are supported by any real financial logic. When that becomes obvious to everyone, the bubble bursts and prices coming crashing down.

As the great Warren Buffett once said, a pin lies in wait for every bubble and when the two eventually meet, a new wave of investors learns some very old lessons.

If you’re an experienced old hand at the investment game you might just have mastered the art of timing with these things. If not, you’ll steer well clear if you’ve got any sense.

3. Little and often:

Over time water can form great caverns in rock. It doesn’t happen overnight. It happens by the constant drip, drip, drip, effect of water over years and years and years.

When it comes to saving much the same applies. It’s those regular small amounts that over time can build into substantial wealth.

Regular saving is a good habit to develop and savings accounts provide a reliable place for your emergency fund and also as a means for building capital sums for the purchase of other forms of investment like stocks and bonds, and property too

However remember this; no one has ever become seriously rich by investing in savings account alone.

The gains from savings accounts will always be relatively small and over the medium to long term are unlikely even to keep pace with inflation.

Nevertheless regular saving this way is a good starting point in wealth creation.

Once you start to build a decent sum you can then look at other forms of investment such as stocks, bonds and property.

However you must remember that savings accounts are not risk free if that’s your only form of investment.

Focusing only on a savings account would mean you miss out on better potential returns elsewhere.

Savings accounts are a very good starting point though and by putting a slice of your income away each month, as soon as you get paid,  you’ll be taking the first step to building capital.

Please share this post with your friends:

Did you find this article interesting and useful?

If so, then please share it on social media with your friends. When you share, everyone wins.

So please share it now. If you do I will be ever so grateful and you’ll be helping a keen blogger reach a wider audience.

Thank you.

Other articles you might also find interesting:

© Roy Joseph Sutton and Mann Island Media Limited 2019. All Rights Reserved.