Warren Buffett Investment Tips for Beginners
Looking for investment tips from Warren Buffett? Here are some quotes from Warren Buffett that can teach every beginner investors how to invest their money wisely and how to become a successful investor like him. There are many famous Warren Buffett quotes online that reminds us how to become intelligent investor.
Few months ago I already published some quotes of Warren Buffett about getting rich, business and investing, investing. Let us continue sharing some investment tips for beginners and as usual we will provide some “quoted” phrases from the successful investor.
Warren Buffett Investment Tips for Beginners
Put 10% of the Cash in Short-Term Government Bonds
“Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”
Other Warren Buffett Investment Tips for Beginners
- Price is what you pay. Value is what you get.
- Risk comes from not knowing what you’re doing.
- Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
The quote “never lose money” is my favorite. Every beginner investor should know how to win the money game. We all know the rich investors will play the money game to win. If you want to win the money game called “investing”, you have to know first what you are doing (according to Warren Buffett). If you know what you are doing, you are simply minimizing the risks.
When Warren Buffett Buy and Sell Stocks
What does Warren Buffett really mean in his statement;
Our favorite holding period is forever.
Our favorite holding period is forever. This means he will pick the right stock he is familiar with, and the stocks he believe it is worth holding on for a very long period of time. In investing, the more years your money stayed invested, the more chances it will accumulate and get a big return on investment.
Maybe you asked, I want to invest money like Warren Buffet and succeed, “how can I do it?”. All you need to do is to follow the investment tips he shared to everyone of us. Warren Buffet advice is to “put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.” This simply means bonds are good investments just use some of your investment funds when buying savings bonds.