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10 Investment Tips from Multi-Billionaire Warren Buffett

Emily 22 de August del 2016 Luxury Life
According to Forbes’ 2016 list, Warren Buffett has the distinction of being the third richest person in the entire world. Just let that sink in a bit. His personal net worth is an estimated $60.8 billion, and his company Berkshire Hathaway is valued at over $250 billion.

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Here are 10 pieces of advice Buffett has for people who are looking to build their own wealth through investments.

  1. Read as much as you can on investing. Buffett’s favorite book is a classic from 1949 called “The Intelligent Investor”, by Benjamin Graham, and he also recommends books by author John Bogle.
  2. But then, you have to actually get your feet wet. “The earlier you start, the better.”
  3. “Cash is a bad investment over time. But you always want to have enough so that nobody else can determine your future.”
  4. Credit cards are not a good way to build wealth – the interest rates are simply too high.
  5. You should constantly be investing in yourself and working to improve yourself: “A person’s main asset is themselves, so preserve and enhance yourself.”
  6. Go for the long-haul. Warren Buffett has famously said, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes!”
  7. Try an index instead of trading stocks individually. “This accomplishes diversification and time, two very important things.” A good example is the S&P 500.
  8. If you have your heart set on stock trading, make sure you only deal with industries you understand.
  9. Learn from other people’s mistakes. What’s Warren Buffett’s biggest mistake? “The biggest one… is being reluctant to pay up a little for a business that I knew was really outstanding.”
  10. His last piece of advice? Trust yourself, don’t follow the herd. “To be a successful investor, you must divorce yourself from the fears and greed of the people around you.”

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