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.

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. 

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.

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.