Warren Buffett is a self made billionaire, one of the most successful investors of all time and has pledged to give away 99% of his fortune (circa $70 billlion). He is also one of the most quoted people in the world of finance. I have picked my top 5 Buffett quotes, outlined why they make so much sense ……..and why you should follow them.]
1)“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
When investment markets drop the knee jerk reaction is run to cash and cash out your investments – as Buffett says though be greedy at this time as stocks are cheap and effectively on “sale”
2)“If you buy things you do not need, soon you will have to sell things you need.”
This advice relates to impulse buys and why spending money frivolously can impact you long term.
3)“The years ahead will occasionally deliver major market declines — even panics — that will affect virtually all stocks. No one can tell you when these traumas will occur.”
The stock market can be a roller coaster ride. There will be corrections and there will be bear markets, it’s a natural part of investing. Yet, it’s also impossible to know when these
The media will certainly make you believe that they know when these things will happen. But repeating and saying something will happen all the time, of course they eventually will be right.
What you can do is be prepared, stay diversified, and keep investing consistently if you have years to go before retirement.
4)“Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick, no.”
While there is plenty of good things in the investing industry, there is also the shady activity as well. False promises of massive returns, get rich in a few days, this company will be the next Amazon, etc. If you read these kind of articles or emails, ignore and move on. No one can promise you these items and no one exactly knows the future for particular investments.
5)“Someone’s sitting in the shade today because someone planted a tree a long time ago.”
As Warren Buffett has been quoted before, the younger you get started the better off you’ll be. While learning about investing might not be fun for you, if you just start, you’ll be stress free later in life. Many people will put things off or will worry about it later.But when later comes, you realize the mistakes you made by waiting. Sure , you can play catch up, but it’s much more difficult or can create a world of anxiety as you get older.