As is true for many in the personal finance realm, I’ve always admired Warren Buffett. I mean, who doesn’t? Not only is he one of the richest people in the world, but he has been sticking to his guns of promoting common sense advice for decades – long before many of us were around.
Out of sheer luck, I happen to live about 10 minutes from Buffett in Omaha, Nebraska. Sadly, none of his wealth has transferred to me via osmosis, but that’s a different story for a different day. 🙂 That being said, I found this infographic at Visual.ly and knew that I’d want to share it here at Sprout Wealth.
I’ve spoken a lot about investing on the site, and rightfully so as investing is a vital part to growing your wealth. Whether that means starting to invest with less than $1,000 or learning what investments should be in our 401(k)s taking investing seriously is something we all must consider in order to get where we want to in life.
Wisdom From Warren Buffett
What I like so much about this infographic is the rich wisdom we can take from Buffett. You could argue that it’s easy for someone as wealthy as Warren Buffett to do well with investing, but that’s missing the point. Much of the quotes listed here display his discipline – a common sense approach to investing.
I know this approach may not be sexy. It may not be exciting. That’s not what investing in the stock market should be though. It should be done with an eye towards building wealth over the long haul instead of chasing gains. That’s probably why two of my favorite quotes from the infographic are:
- “I think the worst mistake you can make in stocks is to buy or sell based on current headlines.”
- “When we own portions of outstanding businesses with outstanding managements our favorite holding period is forever.”
Both of these highlight the need to view investing as a slow and steady approach and one that focuses on building a portfolio of solidly run companies or index funds. The first is a mindset and the second can be accomplished by investing in index funds or creating your own in a Motif Investing account or other brokerage of your choice. At the very least though, make sure you don’t forget the first rule, or the second rule for that matter, of money, as according to Buffett.