Warren Edward Buffett is currently the third richest man in the world.
As of today, January 11, 2019, the CEO of Berkshire Hathaway is worth $81.1 billion as estimated by Forbes.
Asides being a billionaire, he is also known as the "Oracle of Omaha" for being one of the most successful investors of all time.
Another thing he is really good at is dishing really good money/investing advice. Over the years, Buffet has shared numerous of these. Today, we compile just seven of these pieces of advice.
Here are seven investment tips you need to make money in 2019:
- "Rule №1: Never lose money. Rule №2: Never forget rule №1"
What's the point of investing if all you do is lose money? Makes no sense right. This is why Buffett warns against being frivolous or gambling. Take calculated risks instead in order to reduce your chances of losing money.
- "Never invest in a business you cannot understand."
It’s common knowledge that Buffett always does his homework before deciding to invest in any business. As such, he invests only in companies he thoroughly researches and understands. This way, he knows exactly what he is getting into. You should definitely do the same.
- "Never depend on single income. Make investment to create a second source."
- "Do not put all eggs in one basket"
- "You don't need to be an expert in order to achieve satisfactory investment returns." He shared this advice in his 2013 annual letter to his company's shareholders. "Keep things simple," he adds.
- "Focus on the future productivity of the asset you are considering." Buffett also says, "[O]mniscience isn't necessary; you only need to understand the actions you undertake."
- "Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important."
These last three are five of Buffet's fundamentals of investing.