Warren Buffet Investment Tips
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Recently, Warren Buffett invited a group of business students for an intensive day of learning.
One of the tips he stressed is that investors should not think that what they read today is important in terms of their investment strategy. Investors should realize that:
1. If you knew what was going to happen in the economy, you still wouldn’t necessarily know what was going to happen in the stock market.
2. they can’t pick stocks that are better than average.
Stocks are a good thing to own over time. There’s only two things you can do wrong: You can buy the wrong ones, and you can buy or sell them at the wrong time. And the truth is you never need to sell them, basically.
Buying a cross section of American industry is a good idea. If the cross section doesn’t work, picking the little beauties here and there isn’t going to work either. Then they just have to worry about getting greedy.
If you really want to invest, get greedy when others are fearful and fearful when others are greedy. Of course, you shouldn’t get greedy when others get greedy and fearful when others get fearful. At a minimum, try to stay away from that.
