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10 Investment Advice from Warren Buffett

10 Investment Advice from Warren Buffett

Warrant Buffett is probably the most famous, well respected business icon of our time. The CEO of Berkshire Hathaway is an investment genius himself and has made billions from his expertise from a very young age. There is no wonder that the legend gives the most timeless pieces of investment advice.

If like me you have also struggled with managing your money or been muddled while investing your money read on to find out the Best Investment advice given by the Oracle of Omaha Warren Buffett.

1.Invest in yourself the most

“Invest in as much as yourself as you can, you are your own biggest asset by far” – Warren Buffett said this in a CNBC interview. No one can take away from you what you invest on yourself, so learn as much as you can. Improve yourself bit by bit every day. Buffett echoes, “Anything you invest in yourself, you get back tenfold.

2. Do not lose more money than you make

“Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1.” ― Warren Buffett, this is perhaps one of the most revered Warren Buffett quotes of all time. Buffett has personally experienced this when he lost nearly $ 23 billion dollars in the 2008 financial crisis. Never make an investment you are not sure about, never gamble with your money or put it in a place where you are not sure about. Never go into a money strategy with a losing mindset. Don’t lose more money then you make.

3. Only invest in companies or industries you understand

“Never invest in a business you cannot understand” ― Warren Buffett. 

Approach areas of investment with caution and do detailed research about the company and the industry. If after your research you still can’t reasonably understand it do not invest in it.

4. Develop healthy money habits at an early age

“The chains of habit are too light to be felt until they are too heavy to be broken.” ― Warren Buffett said this in 2007 while addressing the students at the University of Florida. Start forming positive habits from an early age cause once they are formed it is difficult to break habits that will hurt your pocket.

5. Never leave home without cash on hand

“Cash, though, is to a business as oxygen is to an individual: never thought about when it is present, the only thing in mind when it is absent. When bills come due, only cash is legal tender. Don’t leave home without it.” — Warren Buffett

Keeping cash reserves on hand is another key no one talks about, it will ensure your security when crises arise

6. Learn about Money as much as you can

As a part of investing in yourself, you should learn about money from an early age as much as you can. The more you know about money the wisely you can manage and invest it in the right places. Warren Buffett once said that “Risk comes from not knowing what you’re doing.”

7. Diversification is not for everyone

Most investors suggest in diversification of your assets but Buffett disagrees on this. He says that diversification is not always a good idea. According to him diversification is for people who don’t know that much about their investment, he says to think long term and trust in your decision. People are afraid that they might sink their entire portfolio if they don’t diversify their assets, but this might make it all the more harder to keep a check on their portfolio based on the current market.

8. Don’t focus on timing the market

In his annual meeting at Berkshire Hathaway Buffett said that “We have not been good at timing…We’ve been reasonably good at figuring out when we were getting enough for our money.” While investing one should focus on the value that they are getting from their investment not on the immediate rise and fall of the price.

9. Stay away from cryptocurrencies

The vice chairman of Berkshire Hathaway Charles Munger said in the annual meeting that “In my life I try and avoid things that are stupid and evil and make me look bad in comparison with somebody else — and Bitcoin does all three.” Buffett has had the same opinion about Bitcoin or other crypto currencies since the very start.

10. Come back stronger from rejection

Surprisingly Buffett was rejected from Harvard Business School, but he did not let this rejection bog himself down. He went on to study at Columbia where he met his mentor Benjamin Graham.

“I believe that rejection is a blessing because it’s the universe’s way of telling you that there’s something better out there.” Said Michelle Phan.


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