While anyone can participate in the investment industry, only a few people have experienced a lifetime of continual investment success. Continue reading to find out four pieces of advice from some of the most famous investment gurus in America.
The Oracle of Omaha
Warren Buffet is considered to be one of the most successful investors of all time. Not only is he one of the richest men in the world, he also is a dedicated philanthropist. According to a recent Time magazine article, one of the best pieces of advice that Mr. Buffet has ever given isn’t even about money. That is, Mr. Buffet famously said that every person is their own biggest asset and should invest in themselves. Mr. Buffet goes on to recommend that people should cultivate good habits, never stop learning and take care of their mind and body. A healthy and highly functioning life goes hand-in-hand with strategically smart investing.
Jack Bogle, the founder of Vanguard, was originally derided when he created the very first retail stock index fund back in the 1970’s. However, the former CEO of Vanguard guided his company to become the world’s largest mutual fund company and manage trillions of dollars every year. According to Mr. Bogle, diversification must be balanced with simplicity in conjunction with lower costs. In addition to this, an investment firm must be committed to transparency through sharing financial statements, even if they aren’t ideal.
Peter Lynch is a stock investor and a former manager at Fidelity Investments who oversaw double returns during his tenure. Mr. Lynch wrote a number of influential investing books that can be summed up in a few principles. First, only buy what you understand. This means to use common sense and first-hand experience to make careful investment decisions. Second, do your research. For example, be sure there is a low debt-to-equity ratio and high PEG ratios and percentage of sales.
While not all investment gurus are world famous, their advice is still valid and useful. For example, Brad Reifler is the CEO of Forefront Capital Management and specializes in forex and commodity investing. These volatile markets are not for the inexperienced, who can easily and quickly lose a fortune overnight. However, Mr. Reifler advises forex investors to maximize profits through limiting orders, maintaining discipline and utilizing stop-loss orders.
Every investor can profit personally and financially from follow the advice of well-known investment experts. For example, every investor should invest in themselves through proper habits, self-care and education. Diversification reduces risk, but must be balanced with focused simplicity. Only buy what you understand after careful research. Finally, be sure to seek specific advice for exclusive investing markets.