If you’re looking to amass a personal fortune to retire early, you could do much worse than listen to Warren Buffett. The multi-billionaire head of Berkshire Hathaway freely dispenses investing advice to anyone willing to listen. Buffett has one main trick he credits for much of his investing success, but his list of free advice to others is extensive.
Granted, it helps that his personal fortune makes it so a loss of several thousand dollars — or even $1 million — doesn’t sting. That’s not a luxury most people can afford. Still, anyone can learn from these 10 investing tips Buffett has provided over the years.
1. Simplicity as a strategy
- Warren Buffett quote of note: “I don’t look to jump over 7-foot bars; I look around for 1-foot bars that I can step over.”
Sinking money into technology or other flashy investments could potentially yield a big payday, but Buffett built his fortune by playing it safe. There will always be a need and demand for insurance, manufacturing, and utilities. If it’s something people need every day, chances are it’s going to remain a successful investment.
2. Be in it for the long haul
- Warren Buffett quote of note: “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
Although he shuns credit cards, Buffett bought stock in American Express in 1964. It is still a major part of Berkshire Hathaway’s investment portfolio to this day. Buffett is not into day trading. He is only interested in finding investments he can hold onto for years at a time. It’s the same strategy practiced by the U.S. government.