Warren Buffett might be old, but the billionaire investor has some great advice when it comes to making investments. In 2016 alone, Buffett has invested close to $1 billion into the oil business, which comes at a time when experts believe gasoline might be nearing the 99 cent mark. Buffett is utilizing his investment knowledge from the past to buy assets when they are very cheap. Instead of actually buying oil, he is investing millions in shares of Phillips 66, which is an oil refiner. This is because oil refining is usually profitable no matter what the price of oil is. Here is just one example of how Buffett serves to invest and make money. No matter what you want to invest in, Buffett’s advice can be extremely helpful because of his financially successful life experiences.
Goals for investing
Buffett says not to worry about the daily changes in the stock market. If you focus too much on these day to day changes, then you will never be able to invest in something that will give you a good return. You have to also keep this in mind if your investment begins to see a gain. Just as quickly you see this gain, you can see a dip just as fast. Buffett claims to rarely make macro forecasts simply because there has never been any real sustained success from them. It is important to invest in different industries. You do not necessarily have to invest your money in a place where you have earned it, especially if there are better industries available, where there might be a higher rate of return. Be wary of borrowing money from others for investments you think might work. It is more important than you save and use your own money for any investments you wish to make. Instead of losing someone else’s money, and having to pay them back, at least you have only lost your own money, which can be made back. One of Buffett’s most recent investment goals for individuals is to focus on investments within the United States. Nobody has benefited from going against America, which is why you should invest within the country, rather than through outsourcing.
Goals for investment management
In addition to basic investment goals, Buffett also has plenty of tips for managing your investments. The first is to take responsibility for your actions, even if you make a wrong investment decision. You want to analyze to see what went wrong to make sure it doesn’t happen again, but do not beat yourself up over it. The next piece of advice is not to specify a retirement age, as you never know when you’ll want to give up making money. Also make sure you do not interfere with great managers because they know what they are doing. One of the most important takeaways from Buffett is that you should not be greedy when it comes to compensation. Even if your investment success outweighs that of another individual, do not let your ego and greed get in the way.
Do you follow any of Warren Buffett’s investment advice and has it worked for you? Let us know below!