Invest Like Warren Buffet - 7 Investing Secrets
Investing is one of the most important parts of obtaining financial freedom

Not everyone has the investing skills of Warren Buffet.

But here's some key information and habits to help you that worked for the great man himself.
1. Compounding

The 8th wonder of the world.

It works over time to magnify everything but very powerful in investing.

Even small amounts compounded for many decades grow significantly. For example, Just $1 saved at age 10 would give Warren over 13 million dollars at age 90.
The key is to not interrupt it.

Time in market beats market timing

$100k initial investment @ 8% p.a. over 30 years and you are a millionaire.
Benjamin Franklin was quoted as saying "Money makes money. And the money that money makes, makes money."

Your money can work 24/7/365.

So keep building and adding and surf the compound interest wave.
2. Patience

Buffet started young and has had the longevity to keep investing all his life.

Most of the gains from compounding come in the later years.

Buffett has been investing since he was 10 years old and now has an investing career spanning eight decades.
Resisting the urge to sell during downturns or highs of bull markets are hallmarks of great investors.

There can be long periods of nothing happening in the stock market and then a lot happens in a few weeks.

Patience can be developed.
3. Consistency

Buffet consistently invests in quality companies over time.

And just stays invested.

One good way for regular investors to follow this approach is by having a strategy.
Invest affordable amounts consistently each week/month/quarter.

This method is sometimes called "Dollar Cost Averaging" and it smooths out the price you buy at - avoiding timing of the market.
4. Managing Emotions

Many decisions to buy or sell are made based on what people hear others recommending at work, dinner parties or friends over a few drinks.

You need to be independent.

Block out information from the environment around you unless it has big validation.
Life can throw up surprises so always have an emergency fund.

Having an emergency fund gives you the security to deal with any situation thrown up by the market.
5. Understanding

Buffet will not invest in something unless he understands it inside out.

Blindly investing in stocks just because you know their name, use their products, etc. is not the only criteria.

It can be a good starting point but you need to go deeper.
Research everything thoroughly before you invest to build out your conviction.

When the market dips, your conviction allows you to hold or even buy some more.
6. Focus

Warren Buffett's secret to success is intense focus — instead of doing more, he does less.

He once told his pilot that in order to reach his goals, he needed to do three things.

The first was to write down his 25 top goals, and then circle the top 5 most important.
Then, separate the top 5 into their own list — and goals 6-25 get put on a 'not to do' list.

Ignore everything on the 'not to do' list until you've achieved your top 5.
Information is abundant in today's world and it can tug at our attention constantly.

Market noise and commentators trying to predict whether the market will be up or down next week.

Focus on your long term plan.

Build up barriers around you to prevent distraction.
7. Self Educating

Buffet once said "The more you learn, the more you earn"

Knowledge around investing has never been so available but you may still not be informed.

Self educate on investing now.

The best way is to actually start by doing. Begin with small amounts.
Read/listen books, podcasts, YouTube - many are free.

"The Psychology of Money" -
@morganhousel
is also an excellent resource for all levels of investors.
@morganhousel Investing is a skill for life and should be part of any financial literacy education given in schools.

If you want to learn more on investing and financial freedom then follow me:

@FinFreeWizard
If you want to share then retweet first tweet below:

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Financial Freedom Wizard

Financial Freedom Wizard Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @FinFreeWizard

12 Oct
8 Steps To Reach Financial Freedom By The Time You Turn 30

No. 4 might be tough for you to take.
What does Financial Freedom mean?

You can live off your passive income and spend your time however you want.

Also known as:

- FIRE (Financial Independence Retire Early)
- FI (Financial Independence).
The freedom to continue working and doing what you love. Or not. It's up to you.

You're in your 20s. The earlier you start the better.

Life distracts you keep your eyes on the prize.

Here are 8 essential principles to follow if your goal is Financial Freedom
Read 15 tweets
11 Oct
12 Steps To Control Your Expenses For Your Financial Freedom
One element of Financial Freedom that gets talked about less is expenses.

While cutting expenses to the bone won't get you to freedom, not controlling them can prevent you.

Optimising your expenses is smarter than minimising.

Let's discuss....
1. Identify your aims

Write down how much money you need to get to.

Identify what your lifestyle will look like and how much money you'll need each year to fund it.

The more specific your goals, the higher the likelihood of achieving them.
Read 25 tweets
10 Oct
Build Wealth - 12 Hidden Rules Of The Game Your Family Were Never Told
1. Being rich and wealthy are not the same.

The rich buy things, the wealthy buy time.

Being rich means that you can buy the things you need and want.

Being wealthy means you never have to worry about money and can do as you like with your time.
2. The first goal of earning money is to get rich, but the goal that really matters is becoming wealthy.

Being wealthy means you have the time to spend on the people and causes you care about most.

Being rich means you can spend.

Being wealthy means you're free.
Read 20 tweets
9 Oct
19 Lessons From "The Psychology of Money"

A book by @morganhousel
@morganhousel This book really had a big impact on me.

It's great for beginner and advanced investors.

And even anyone that wants to do better in life with money.

Truth is it's not that complicated.
@morganhousel 1. Skills Needed

Financial success is a soft skill.

How you behave is more important than what you know.

You don't have to be a genius to be successful with money.
Read 29 tweets
8 Oct
8 things rich people do and don't do every day
What you do today counts.

Your daily habits are a major determinant of your wealth.
The metaphor best known is the avalanche.

These habits are like snowflakes — they build up, and then you have an avalanche of success.
Read 16 tweets
7 Oct
If you’re in your 30s read this
If you wasted or partied your 20s away

Don’t worry

It’s not too late to get things right

You have lots of experiences to learn from

And use the lessons wisely

You just need to focus on the following:
- Create additional streams of income

Some people say follow your passions

But it's not as simple as that

You need to add value to society

If society is to reward you with additional income

The more sources the better including a high earning 9-5
Read 16 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

:(