Billionaire Investor Warren Buffett Gives 3 Tips For Stock Investors

Warren Buffett

Shutterstock / Krista Kennell

Born on August 30, 1930, and at the age of 87-years-old, billionaire investor Warren Buffett has plenty of experience in the stock market. So when Buffett AKA the Oracle of Omaha has advice on investing we should all perk up and learn from his wealth of experience. Buffett, who is the CEO of Berkshire Hathaway, has a net worth of over $86 billion and here are three tips for stock investors.

Buffett released a letter to Berkshire Hathaway’s shareholders recently and he included some words of wisdom when it comes to investing. Buffett advised investors to view stocks as businesses and not ticker symbols. “I view the stocks that Berkshire owns as interests in businesses, not as ticker symbols to be bought or sold based on their ‘chart’ patterns, the ‘target’ prices of analysts or the opinions of media pundits,” Buffett wrote.

The Berkshire Hathaway CEO noted that solid businesses will be solid investments over the long haul. “We simply believe that if the businesses of the investees are successful (as we believe most will be) our investments will be successful as well. Sometimes the payoffs to us will be modest; occasionally the cash register will ring loudly. Overall – and over time – we should get decent results. In America, equity investors have the wind at their back,” Buffett wrote.

Buffett said to never invest with borrowed money. “This (data) offers the strongest argument I can muster against ever using borrowed money to own stocks. There is simply no telling how far stocks can fall in a short period. Even if your borrowings are small and your positions aren’t immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions,” Buffett wrote. So utilize these insightful tips from Buffett, who is a legend in the investing world.