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Lessons from the Best: Warren Buffett


Insights from one of the world’s most successful investors.
 
Warren Buffett is one of the world’s most successful investors. His talent for investing
has helped him become a self-made billionaire and a trusted source of investment insights
for others. We’ve collected a few of our favourite lessons from the “Oracle of Omaha.”
Here’s what you can learn from them.
 
Lesson 1: Buy low, sell high
 
When equity markets are on the rise, it seems everyone wants to invest. That’s known as
 “buying high.” But when markets decline, we have a tendency to want to sell before things
get worse. That’s known as “selling low.” One of the worst things you can do is panic and
sell your stocks. Historically, the market has always corrected itself over time.
 
As Buffett says, “We simply attempt to be fearful when others are greedy and to be greedy
only when others are fearful.” In other words, “buy low and sell high.” If you follow Buffett’s
advice, you may be able to grow your investments over the long-term. 
 
Lesson 2: Invest for the long-term
 
This lesson is a useful reminder that investing can help you achieve your long-term financial
goals. Some days (or weeks or months), you might earn a negative return on your investments,
and that shouldn’t be a concern. The stock and bond markets do not rise in a straight line.
There will always be times when markets move up and down, but the historical trend is for
market gains over the long-term. Hence, Buffett’s assertion that “our favorite holding period is
forever.” As long as you remain a disciplined investor, your long-term gains are likely to
exceed any short-term losses.  
 
Stick with your investments and give them enough time to work for you.
 
Lesson 3: Get advice
 
While it’s true that Buffett is a self-made billionaire, most of us could use some help when it
comes to investing.
 
Being a do-it-yourself investor can be overwhelming. There are many decisions to make,
like what to invest in, how to diversify your portfolio and when to buy or sell individual
investments. Not everyone has the time or expertise to manage their own portfolio, so
it can be risky to try. As Buffett says, “risk comes from not knowing what you’re doing.” 
 
Just as you would enlist the services of an electrician or plumber to handle complicated
tasks, you should seek an expert to manage your investment portfolio. Working with an
advisor will help. We will ask about your unique financial goals and needs, your investment
time horizon and your tolerance for risk and use that information to help select the best
investments for your portfolio. We will also monitor your investments over time and
help you make important decisions as your financial goals evolve.
 
Warren Buffett isn't the only one with good advice. Contact our office today to speak with us. 
 

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