“Avoid the dumb things”
Today we are looking at investment lessons from Mr Buffet, one of the most successful investors globally, even at 90 years old. By making great investments over his lifetime, Warren Buffet has created a huge and unstoppable snowball effect.
Although I primarily invest in property and not stocks as he does, I’ve learned so many principles from him that I apply to my property investment strategy. Here are some of my favourite quotes by or lessons from Warren Buffet.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
To buy when everyone is selling and sell when everyone is buying is easier said than done. It requires tremendous emotional intelligence and discipline. Read our article 5 Reasons You Should Invest in Residential Property in South Africa Now.
“It is not necessary to do extraordinary things to get extraordinary results. I don’t look to jump over 7-foot bars; I look for 1-foot bars that I can step over.”
You don’t need to shoot out the stars or hit a home run on every pitch. The secret is consistency. We discuss this consistency in our article, Don’t Mind Me… I’m Just Over Here Building My Empire.
“Only when the tide goes out do you discover who’s been swimming naked.”
When everything is going well, you can get away with building and running a sloppy property portfolio. But when the tide goes out, and the economy or property market is not doing so well anymore, your sloppiness will get exposed.
“Forecasts usually tell us more of the forecaster than of the forecast”
There are a lot of opinions out there but look at the facts. In our article about Warren Buffet’s biography, Success is Like a Snowball…, we discuss the importance of independent thinking.
“Price is what you pay. Value is what you get.”
What you pay for a property determines the value you will get. If you pay too much for a property, you will only get a little value. In property investment, you make your money when you buy. In our article, Ready, Set, Negotiate!, we discuss how you can buy property below its market value.
Read the entire article in the March Edition of Real Estate Investor Magazine.