{"id":3053,"date":"2017-09-19T23:42:05","date_gmt":"2017-09-19T23:42:05","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/5-tips-from-warren-buffett-investors-should-take\/"},"modified":"2020-10-28T01:39:30","modified_gmt":"2020-10-28T01:39:30","slug":"5-tips-from-warren-buffett-investors-should-take","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/5-tips-from-warren-buffett-investors-should-take\/","title":{"rendered":"5 Tips From Warren Buffett investors should take to heart"},"content":{"rendered":"
\"image\"<\/figure>\n

Whether you have been in the
\ninvesting world long or not, it is very likely you\u2019ve heard of Warren Buffet. A
\ntop dog in finance of all sorts, he is one of the five most wealthiest people
\nin the world.<\/p>\n

Often referred to as the world\u2019s
\ngreatest investor, his long-term track record suggests that title is well
\ndeserved! Investors and the business world alike have been seeking his advice
\nfor decades, so here we have picked our favourite moments of his wisdom:<\/p>\n

 <\/p>\n

\u201cTry to be fearful when others are greedy and
\ngreedy only when others are fearful.\u201d<\/em><\/strong><\/p>\n

Probably the most famous
\nBuffett-ism, this quote is essentially another way of phrasing the popular
\ninvesting maxim, \u201cBuy low; sell high.\u201d Investors frequently do the opposite
\nbecause of\u00a0herd mentality; our psychological desire to follow the crowd.
\nBut being a contrarian can be much savvier. For example, when current events
\nscare investors away from a down market, you might use that opportunity to buy
\nquality stocks on sale.<\/p>\n

 <\/p>\n

\u201cBoth large and small investors should stick with low-cost
\nindex funds.\u201d<\/em><\/strong><\/p>\n

Buffett may be a brilliant stock
\npicker, but he still recognises the strength of simple investing with a
\nlow-cost S&P 500 index fund.<\/p>\n

In 2007, Buffett bet a New York
\nhedge fund $1 million that his simple, low-cost investing strategy would
\noutperform the hedge fund industry over 10 years. And he won.<\/p>\n

 <\/p>\n

\u201cThe investor of today does not profit from
\nyesterday\u2019s growth.\u201d<\/em><\/strong><\/p>\n

This oldie but goodie reminds us
\nthat past performance is no guarantee of future results, so you can\u2019t count on
\na hot investment continuing its streak. Instead, look to the future. Be sure
\nany investment you\u2019re interested in has good prospects and can help you reach
\nyour goals.<\/p>\n

 <\/p>\n

\u201cOur favorite holding period is forever.\u201d<\/em><\/strong><\/p>\n

Of course, Buffett doesn\u2019t really
\nexpect anyone to hold onto an investment forever. His point is that you should
\n\u201cbuy into a company because you want to own it, not because you want the stock
\nto go up,\u201d\u00a0as he put it to\u00a0Forbes magazine in 1974. That means if
\nyou\u2019re trying to invest in\u00a0individual stocks, you look for good businesses
\nyou believe can be profitable for the long haul. Then you\u2019ll only sell when you
\nneed the cash, not because it\u2019s time to unload a dud.<\/p>\n

 <\/p>\n

\u201cAnything can happen anytime in markets\u2026 Market
\nforecasters will fill your ear but will never fill your wallet.\u201d<\/em><\/strong><\/p>\n

Listen to Warren:\u00a0Ignore the
\nnoise\u2014especially given today\u2019s media landscape, where we have constant access
\nto information, and every minor event stands a chance at making headlines and
\nmoving the market (at least in the short term).<\/p>\n

In the end, as long are you\u2019re
\nconfident in your plan and portfolio, this shouldn\u2019t change your long-term
\ninvesting strategy! Like the Raiz philosophy to invest small amounts regularly,
\neven in falling markets, this can help you to ride out the downturns in the market
\nand is one of the keys to having a healthier balance over the long run.<\/p>\n

 <\/p>\n

\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

\n
\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/a><\/figcaption><\/figure>\n

 <\/figure>\n

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The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n

A Product Disclosure Statement for Raiz Invest and\/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.<\/em><\/p>\n

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.<\/em><\/p>\n

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.<\/em><\/p>\n

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Whether you have been in the investing world long or not, it is very likely you\u2019ve heard of Warren Buffet. A top dog in finance of all sorts, he is one of the five most wealthiest people in the world. Often referred to as the world\u2019s greatest investor, his long-term track record suggests that title […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[61,70],"yst_prominent_words":[]}