What Makes Warren Buffett Such a Successful Investor?

Warren Buffett’s style of investing is certainly not the be-all and end-all of investment philosophies, and indeed some of his ideas about investing have come under scrutiny by Wall Street traders and financial pundits. He’s lucky, they say. He has good PR, they say. But there’s no denying that Buffett, a lifetime investor and one-time richest person in the world has an investment record unrivalled by any of his critics.

For that reason alone, a look at Warren Buffett’s investment style is beneficial. It’s also important to note that it is rare to achieve the level of investment success that Warren Buffet has over the course of his career. It’s for this reason he’s known as the “Oracle of Omaha”. Most of us do not have the knowhow to navigate the market like Mr. Buffet and would be better served by working with a  private wealth management firm.

Even if you don’t expect to become the next Warren Buffet, there are lessons we can all take from his success.

He Started Early

At the age of eleven, Buffett made his first investment. It sounds like the stuff of tall tales, but it’s true. While you might not be able to start that early (unless you’re an eleven-year-old reading this) the important piece of advice to take away here is: start now. There is no sense in waiting for a market crash or waiting on a trendy stock; the longer you give yourself to invest and grow your wealth, the less risk you will need to take.

He Is Patient

Maybe you’ve heard the maxim “Time, not timing” thrown around by investors – those are exactly the words Buffett lives by. What that essentially means is that, rather than chasing the ups and downs of a volatile market, trying to act as an oracle for the “next big stock”, it is better to make wise investments and stick with them. Over time, he lets the compound returns roll in and…

He Reinvests

Your money can make you money. This is a piece of advice the average investor should take note of. Rather than spend your annual investment income as you would regular income, reinvest that money and watch it grow over time. That’s the power of compound interest. For more info on reinvestment, get in touch with a wealth management company, who can guide you according to your age and financial goals.

He Is Frugal

Less an investment philosophy than a way of life, Buffett’s frugality is nevertheless a useful reminder that no matter how wealthy you are, you shouldn’t waste money. Any time you save money you create an opportunity for more investment and a more robust retirement savings.

While you probably won’t follow every little piece of advice Warren Buffett has to offer his investment philosophy carries with it wisdom learned through experience. Get started early, and find a quality wealth manager to help you invest wisely for the long-term. You may not become a billionaire, but you might find that you retire a whole lot more comfortably.


12 Comments

  • Tanka

    November 4, 2018

    This is an excellent piece, Daniela, I like it.

    Reply
    • Liz

      November 4, 2018

      Agree. A good refreshing piece.

      Reply
      • Quentin

        November 5, 2018

        Same here, nice to see a more positive review of a successful investor.

        Reply
  • Wayne

    November 7, 2018

    I like this one, Daniela. Had no idea who he was before but this is a good read.

    Reply
  • Keely

    November 7, 2018

    I had heard Warren mentioned before in a business class but had no idea about his success.

    Reply
  • Kim

    November 7, 2018

    I love how he started so early. Think I best get a move on though!

    Reply
    • Siobhan

      November 7, 2018

      Ha, that’s exactly what I was thinking Kim. This puts me to shame!

      Reply
  • Steven

    November 8, 2018

    And he’s even frugal!

    Reply
  • Chan

    November 8, 2018

    We had to do a piece on Warren in College. He’s certainly a powerful man, but you’ve got to admire his success.

    Reply
  • Daniela Bucatele

    November 9, 2018

    Wow, so glad you all like this piece.

    Reply
    • Harriet

      November 9, 2018

      Maybe a few more articles like this Daniela?

      Reply
      • Daniela Bucatele

        November 9, 2018

        Harriet, I think so. If any of you would like to offer some blog posts on a figure you admire the most, by all means, drop me a line.

        Reply

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