Warren Buffett’s Top 10 Investing Tips

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Warren Buffett promotes playing it safe. | Paul Morigi/Getty Images for Fortune

Warren Buffett’s Top 10 Investing Tips

If you’re lookingِ to amass a personal fortune toِ retire early, youِ couldِ do muchِ worse thanِ listen toِ Warren Buffett.
The multi-billionaire head ofِ Berkshire Hathaway freely dispenses investing advice toِ anyoneِ willing toِ listen.
Buffett hasِ one main trick heِ credits forِ much ofِ hisِ investing success, butِ his list ofِ free advice toِ othersِ isِ extensive.

1. Simplicity as a strategy

Sinking money intoِ technology orِ other flashy investments couldِ potentially yield a big payday, butِ Buffett built hisِ fortune byِ playing itِ safe.
There willِ alwaysِ be a needِ andِ demand forِ insurance, manufacturing, andِ utilities.
If it’s somethingِ people needِ everyِ day, chances areِ it’s goingِ to remain a successful investment.

He doesn’t shy away from commitment. | Drew Angerer/Getty Images

2. Be in it for the long haul

Although heِ shuns credit cards, Buffett bought stock inِ American Express inِ 1964.
It isِ still a major part ofِ Berkshire Hathaway’s investment portfolio toِ thisِ day.
Buffett isِ not intoِ day trading.

3. Stay in your lane

One ofِ the keys toِ Buffett’s investing success hasِ beenِ not toِ overstep hisِ bounds.
The wayِ heِ sees it, tryingِ toِ act likeِ anِ expert onِ certainِ investment strategies ifِ you don’t knowِ anythingِ is a recipe forِ disaster.
Sticking toِ what youِ knowِ isِ a muchِ betterِ path toِ follow.

4. Increase your knowledge

Stick to what you know. | Alex Wong/Getty Images

There isِ no shortage ofِ resources availableِ to investors.
Even ifِ you knowِ itِ allِ — orِ think youِ knowِ itِ allِ — keepِ adding toِ your knowledge base.
It’s a strategy thatِ hasِ worked forِ Buffett.

5. Go with your gut

In Buffett’s eyes, theِ character ofِ the company andِ the people whoِ areِ a part ofِ itِ counts forِ just asِ much asِ profit margins andِ potential dividends.
If youِ don’t trust orِ care forِ the wayِ a company orِ itsِ CEO doesِ business, thenِ why bother giving itِ your money.
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6. Keep your money here

Read up on what you need to know. | David Silverman/Getty Images

Investing inِ emerging markets overseas mightِ yield a pretty return onِ investment, butِ Buffett prefers toِ stick toِ domestic commodities.
American Express, Apple, Coca-Cola, Delta, andِ Wells Fargo areِ some ofِ the cornerstones ofِ Berkshire Hathaway’s investments, andِ every oneِ ofِ them calls theِ United States home.
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7. Don’t try to predict the future

Trying toِ guess howِ markets willِ behave isِ a pointless andِ maddening endeavor, whichِ isِ why Buffett doesn’t bother toِ attempt it.
Instead, heِ takes solace inِ knowing ifِ anyِ wild market irregularities arise, theِ government willِ doِ what itِ canِ to getِ the economy backِ on track.
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8. Understand the game

Trust your partners. | Drew Angerer/Getty Images

Although theِ manyِ ins andِ outs ofِ investing canِ beِ difficult forِ the everyday Joe toِ master, understanding whatِ makesِ anِ investment profitable isِ crucial.
A company leveraging itsِ potential future earnings forِ short-term gains mightِ not beِ a wise place toِ put yourِ money.
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9. Be willing to pony up

If a stock orِ mutual fund historically andِ consistently performs wellِ yet remains inِ anِ affordable range, it’s a good bet it’s onِ Buffett’s radar.
And ifِ it’s onِ hisِ radar andِ worth theِ investment, heِ won’t hesitate toِ put hisِ money onِ the table.
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10. Strike when the iron is hot

Careful andِ well-planned investing isِ the bestِ course ofِ action, butِ Buffett knowsِ there isِ something toِ beِ said forِ taking action whenِ action isِ warranted.
If anِ opportunity arises toِ takeِ action onِ anِ investment youِ alreadyِ feel strongly about, don’t wait onِ the sidelines., 7 ] .