Three biggest mistakes investors make – Warren Buffett

USA Today asked Buffett to share the three biggest mistakes that investors make. 

1. Trying to time the market. “People that think they can predict the short-term movement of the stock market — or listen to other people who talk about (timing the market) — they are making a big mistake,” says Buffett.

2. Trying to mimic high-frequency traders. Buying stock in a good business and hanging on for the long term, he says, is a better strategy than flipping stocks like a short-order cook flips pancakes.

“If they are trading actively, they are making a big mistake,” Buffett says.

3. Paying too much in fees and expenses. There’s no reason to pay an expensive management fee to invest in a mutual fund when super-low-cost index funds that mimic large indexes like the Standard & Poor’s 500-stock index are available, he says.

“If they are incurring large expenses in connection with their investing,” says Buffett, “they are making a big mistake.”

Here’s how he says investors should play the investing game:

“Buy an index fund, preferably over time, so you end up owing good businesses at a reasonable average price,” says Buffett. “And that is all you have to do.”

That’s it? It’s that simple? Buffett says yes.

Full article

Share on facebook
Share on twitter
Share on linkedin

More Posts

A Day of Prayer & Fasting

A Day of Prayer & Fasting

Today our nation is at a critical juncture. We need to call out to God for His help, His intervention, and His mercy.

Verse of the day

This verse comes from YouVersion. October 7, 2020 Verse of the Day But I will sing of your strength; I will sing aloud of your steadfast love in the morning. For you have been to me a fortress and a refuge in the day of my distress.Psalm 59:16 ESV

Today’s prayer

PRAYER: God, I know that You are able to handle my every need, so please give me the courage to bring all my struggles before You. Stir in my heart a desire to seek You first above all else, because You are the One who cares for me. In Jesus’ name, Amen. From : YouVersion

Categories

Send Us A Message