Investments: top 3 tips!

Warren Edward Buffett is one of the top ranking investors in the world. He is known as ‘the legendary investor Warren Buffett’, CEO and primary shareholder to Berkshire Hathaway who from a young age showed a unique desire to build capital through innovative business from early on and smart investment. It would only make sense when discussing tips on investing that an insight into his ethos and his approach to investment should be the first port of call.

His Chairman’s letter in the Berkshire Hathaway annual report is as always filled with nuggets of wisdom and an incredible sense of a man who has never once lost his footing in a wealthy investments arena filled with intoxicated hyenas.

This sense of self is reflected in his statement; ‘We were born in America, had terrific parents who saw that we got good educations, have enjoyed wonderful families and great health, and came equipped with a ‘business’ gene that allows us to prosper in a manner hugely disproportionate to that experienced by many people who contribute as much or more to our society’s well being.’

Although known for his grounded attitude, Mr. Buffet has experienced stratospheric wealth in investments and in an interview with the Daily Telegraph in the UK in 2008 outlined his top tips on investing and simply who are we not to pause and learn from such a successful individual;

• Common sense is key when looking to invest. Invest in a business you understand, a positive long-term outlook, trustworthy management and at a reasonable cost.
• There is no need to consistently consider what the next ‘big’ thing is as it’s a steady game with a steady hand that will control your longevity in investments.
• Always remember to look at the people running the business, their smarts may not necessarily be tied to an exceptional education but instead a desire to succeed and love of what they do and the ability to manage and work alongside others to meet an overall goal.