Warren Buffett's investment advice

[Postofficejoe]

I believe he tells us how to be safe and make some money...and not to bet the farm on a risky choice that could lead to disaster.

If he did tell us how to risk it; we would all run out and prove him right...(G)

[ricktbdgc]

I havnt ever invested a dime in my life but I'll tell you a strategy that will work. The world is a competition. Think back to the days you had to pick teams for football, soccer, volley ball whatever. You pick the people you think will do best for your team. Theres no guarantee that the 300 pound guy will get a touchdown, but the probability is so high that you would be dumb to not pick the guy. Its all relative to what is available, business is the same.. research before you pick!

[ricktbdgc]

I havnt ever invested a dime in my life but I'll tell you a strategy that will work. The world is a competition. Think back to the days you had to pick teams for football, soccer, volley ball whatever. You pick the people you think will do best for your team.  Theres no guarantee that the 300 pound guy will get a touchdown, but the probability is so high that you would be dumb to not pick the guy. Its all relative to what is available, business is the same.. research before you pick!

[ricktbdgc]

I havn't ever invested a dime in my life but I'll tell you a strategy that will work.. The world is a competition. Think back to the days you had to pick teams for football, soccer, volley ball whatever. You pick the people you think will do best for your team. Theres no guarantee that the 300 pound guy will get a touchdown, but the probability is so high that you would be dumb to not pick the guy. Its all relative to what is available, business is the same.. research before you pick!

[guru2027]

this guy is a really good salesman more than an investor. He knows how to make you listen! That doesnt mean what he saying is true. True used car salesman

[thehookla]

Warren Buffet is to investments what Michael Jordan is to Basketball.....MJ still rules. He is the measure of Best Basketball player

[junkevin]

he's clearly keeping his real strategies/ secrets to himself. when he was young he kept them to himself and he will to his deathbed

[CraneStBlues]

Do the opposite of what he says in public, because wise guys don't give out information for nothing.



[sdot15]

@CraneStBlues exactly

[Ilasperr]

@CraneStBlues While I agree with you for most public figures, I don't think this applies to buffet who is giving most of his wealth away over the next few decades. I really doubt he has anything to gain by purposefully spreading false advice.

[sumankbhagat]

I am a great admirer of Warren Buffet.I am an Indian and always get inspired by people like Buffet.I wish some day India will be so open to new Ideas and inspirational story as today US.

[jayangli]

@sumankbhagat he is the master. lol. India still has a long way to go, so has Asia. But India is improving.

[babibump]

thanks for the advise.

[armghanb]

good advice , " buy good company stocks " , but how do you figure one company is better than the other ? . I saw many "good companies" fold in a matter of few months . There has to be a formula to see which company is good ???

[ALLWORKTOFIXPROBLEMS]

Good Advice, buy low always, and never sell, Brwahahaha, (I am poor, I will never have stocks in less my employer gives them to me,)

[InvestorSolutionsInc]

Rely in better sources to know and learn how to invest.

Our investment advise is free and has been trusted fro years.

[llmasterkll]

What a jack*ss, Warren Buffett, tell people to invest in gold. Let's evaluate savings options, stocks and gold. Who wins? Gold, hands down.

[dlowrey3333]

Unfortunately, you can't duplicate his success. He begets his own. He's a self-fulfilling prophesy. His bets just grow after his followers take action.

[Eshareholder1]

Thanks for the post. Straight from the master himself...

EShareholder

[30percentplusreturns]

Over the past 13 years, my returns come out to 27% per year. All you have to do is buy stocks of solid companies and buy them after they tank. Its really not that hard. And never sell.

[riddler03]

@30percentplusreturns

27% compounded per annum? Bullshit! How did you maintain that rate during 2008 without ever selling? Whatever you made the first ten years was cut in half in 08. So you must have been posting returns north of 60% per year before the crash. BTW, did you ever work for Lehman cause your good at shamelessly playing with numbers?

[Trox118]

@riddler03 maybe he had money in exchange traded funds like GLD?

[dalsenov]

@riddler03

In general Buffett WAS known for compounding his fund's initial money at a rate of about 27 % along 40 years.

That would be a factor of 14,195.Now,as you said, let's assume he "lost" half of its final value in a final "bad year".

That would be a factor twice as low (14195/2=7097).Now because his long track record (about) of 40 years,

his compound annual growth rate (cagr) would be still a remarcable cagr = 24,82 %.This is because his "loss" would be spread over 40 years.

[DexterHaven49]

@dalsenov Yeah, it's a simple formula for figuring average rates of return. Buffett was actually beaten by Claude Shannon over a similar period. Shannon had about 80% in Teledyne but got an average yearly return of around 28% over a long period on his stock portfolio. Mr. Templeton beat them both for a time too. And over a shorter time, the best was Ed Thorp, who had the best Sharpe ratio I ever heard of.

[dalsenov]

@DexterHaven49

Thanks for information! Beside investing it was very pleasant for me to hear about such a remarcable personality as Claude Shannon.This guy was perhaps some sort of genius.

[HoSayLiaoLah]

@30percentplusreturns

But is there any way u can hit 50% return? And I dun mean investing in the Zimbawe currency!!!

[Boogers4dinner]

Warren Buffet is to investments what Michael Jordan was to Basketball.

[ramsantosjr]

@Boogers4dinner HAHAHA THATS A GOOD ONE!

[TimFix]

Warren has backed BYD which recently released a plug in car like the Volt,yet at half the cost. When will it be sold in the USA? Now, is this a sign to the us car companies on how to do something right? Or is the party over for them? Warren is great at what he does and seems to think outside the box. He's a real legend , kids said he put up slot machines to get back allowences? Was this a way to teach them not to gamble? I believe so, since no one could be that greedy: ) I think he really cares

[noraklagrangian]

It's a waste of time investing in stocks. What I do is invest 80% in government bonds and 20% at the casino. The risk-return profile is the same as most equity mutual funds and it's more fun.

[jhalas20]

First of all, I enjoy casinos as well.....Many people are now afraid of stocks because of the recent collapse, but investing in stocks is the same exact thing as being a business owner. If you said I'm going to open my own business, you may say that's a good thing. Stocks are a partial ownership of a business just they are giving a value that bops around every second or minute. If you owned a farm and didn't get it appraised for 20 years, you'd be happy if the farm produce its share of crops.

[noraklagrangian]

Opening your own business or having a farm is risky as well. Many businesses (including farms) fail.

[spanishaustralian]

why bonds? dont you only get like 3% return a year?

[noraklagrangian]

Low risk, low return. I don't think there's anything wrong with investing in stocks but it's boring. What you ought to do is save up in bonds and then before you retire, put the money you don't need all on a roulette table and bet on a color. The stock market effectively achieves the same thing except it's not as fun. Anyone who wants to do more research should read Professor Zvi Bodie's research.

[spanishaustralian]

thats a slaves approach to freedom. fast money is the most exciting.

[spanishaustralian]

but is it not true bonds return very little? even les than a bank? or am i wrong. tell me what is it about bonds, why do people even bother? tax? is it actually higher return than a banks high interest deposit account?

[007380]

He sure dodged the question about what the baby boomers that lost half their retirement should do. Keep buying? Hell, they don't have 30 to 40 more years.

[stemikger]

The thing is even if you are looking to retire in 15 or 20 years, when you do retire you will not be taking out the money all at once, so in effect your money will be invested for 30 or 40 years. What other choice do we have - a mattress or CD, not a good plan, I'll listen to Warren.

[007380]

There are many choices. Learn to invest for yourself. The worse thing one can do is listen to someone else. When Warren Buffet speaks, he's not interested in your well being. He is only interested in his and his stock holders interest. Warren is well known for trying to keep the public from knowing what he is doing. So, anything he says in public, I take with a grain of salt.

[Lingerfoot]

How do you learn to invest for yourself? Whose books can you trust to educate yourself?

[clarkemetalstrust]

hope is a poor strategy, a seat on the board would be better.