Long-term investing, Warren Buffett

Are stock market uncertainties making you nervous? Perhaps the most famous stockholder, Warren Buffett, has lots to say about long-term investing. Check out these quotes on long-term investing from Buffett and hopefully, your perspective will improve.      

 

Long-term investing, according to Warren Buffett

August 18, 2017

Long-term investing, Warren Buffett

Investing during uncertain times is not for the faint of heart. There is more to it than simply: “buy low and sell high.”

One great way to learn the basics of investing is by studying the greatest buy-and-hold investor of all time, Warren Buffett.

Buffett was a millionaire by age 32. In 2008, he became the richest person in the world.

Here are eight famous Buffett quotes that give you a hint at his investing strategies. It may help you formulate an investment strategy of your own – or at least, help you avoid major mistakes. 

  1. "Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."

Your mother probably told you this already: "don't throw good money after bad." You may need to cut your losses and find better use of that money.

However, if a stock you own has gone down for no other reason than general market or sector weakness, but the business is as strong as ever, that's the time to double down.

  1. "Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."

Look for opportunities when others see dread. In the aftermath of the financial crisis, Buffett made multibillion-dollar investments in bank stocks and those have paid off tremendously.

  1. "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio's market value."

Buffett is known to be a long-term investor.

  1. "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

A cheap price doesn’t make a bad investment any better.

  1. “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.”

There are plenty of valid reasons to sell stocks. For example, if a company's business strategy changes, its growth or profitability declines, or if you simply need the money, it can be in your best interest to sell a stock. In fact, Buffett-led Berkshire Hathaway sells stocks regularly, and for a variety of reasons. However, Buffett believes every stock investment should start with an intention of holding it forever.

  1. “Time is the friend of the wonderful company, the enemy of the mediocre.”
  2. "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."
  3. “The most important investment you can make is in yourself.”

Unfortunately, there is only one Warren Buffett. The rest of us need as much information and guidance as possible when making long-term investing decisions.

If the ups and downs of the market make you feel uneasy about investing, there is help.

Reserve your space today for a new seminar: Investing in an Uncertain Market, set for August 24, 2017 at 6 p.m. in The Atrium. 

 

This list was compiled from information from The Motley Fool, The Business Insider and SureDividend.   

 

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