By Bill Taber
Warren Buffett is famous not just for being one of the world’s richest people but also for championing one of the most trusted and profitable investment strategies the business world has ever known. And, of course, this prototype is a footprint every profit-oriented person would surely want to follow.
So, do you want to learn how to invest like Warren Buffett? Here I’ll share three major principles behind the billionaire’s acclaimed philosophy and tips to successful investing:
1. Stay Within Your Circle of Competence
Every investor has a potential niche or area of expertise they’re most familiar with. So, whether it’s FinTech startups, B2B industries, or another industry, Buffett advises that, as an investor, you’ll be more profitable if you invest in the areas that you understand the most. A trusted fiduciary advisor’s knowledge and expertise can help you to invest more successfully in other areas of interest as well.
And, while it seems counterintuitive, Buffett believes in the power of singularity. So, you may want to attempt a concentrated investment approach rather than spreading your portfolio across different companies, industries, and opportunities. Most people underrate the importance of a few simple, big ideas.
2. Invest in Long-Term Prospects
Buffett looks for companies to invest in that have a “long sled ride down the hill,” meaning they have substantial prospects for growth for a number of years into the future. You want to think big picture and long term when it comes to where you want to put your money.
Ask yourself (or your financial advisor): If I invest a substantial amount of money in this company’s stock and the stock exchange suddenly closes down for the next 10 years, would I still be happy with my investment?
Similarly, be patient with your investments. Time is the enemy of a poor business and is the friend of a great business.
3. Cheap Investments Are Not Always Better
Investing is not a get-rich-quick scheme no matter how you look at it. Patience and long-term strategies are key to maximizing your profits.
Buffett advises investors to choose shares of good businesses at fair prices over shares of lesser companies at bargain prices. You may miss out on a “great deal,” but your assets will be safer and have greater potential when invested in a viable business that appears to have solid long-term growth prospects.
Getting Started
One of the major benefits of aligning yourself with Warren Buffett’s investment strategy is that it has a track record of proven results. I can help you get on a similar path of solid investment strategies. Get started today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com.
About Bill
Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.
Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered.
In his spare time, Bill enjoys giving back to his community and served 11 years as a member of the Board of Trustees of Broadlawns Medical Center and 14 years as a Community Representative to their Board Finance Committee. He is also one of the founding members of the Greater Des Moines Connections Mentoring Program. When he’s not working, you can often find Bill spending time with his family and participating in one of his many hobbies, which include traveling to national parks, presidential libraries, and foreign countries; reading non-fiction; and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and watching James Bond 007 films and any movie starring his favorite actress, Meryl Streep. To learn more about Bill, connect with him on LinkedIn.