Pearls of wisdom

Posted by lindsay on February 2, 2014

One of our recent articles looked at Warren Buffett's growing confidence in the American property market. Given his extensive knowledge, it seemed a good idea to offer investors more of his thoughts. In a recent University address, he stressed that individuals choosing property investment should never act irrationally. Also, sometimes people will need to work a little harder to get the best deals. The ultimate key to success however, said Buffett, was emotional stability. Here are a few other points of note:

Explaining your overall investing strategy. “Invest in equities slowly over time.  And invest in yourself.  Enhance your own talents and weaknesses.  Sit on cash if there are no good investment opportunities.”

Changing Principles “The principles of value investing have not changed from the teachings of Ben Graham until now. The principle of investing is to invest in certainty where you know you are going to get two birds from the one you put in.”

Determining whether today's world is a safer place as a result of the various measures implemented after the financial crisis? “The U.S. is a safer place...  in much better shape.... In the U.S. the things that caused problems a few years ago don't exist anymore but bubbles will still come in the future and we will have new problems then. The trick is to not get too excited when everyone is and try to explore the opportunities these bubbles will bring.”

It seems like a good time to find your opportunities, and particularly in the American market.

To read Buffett’s full conversation, click here: http://www.marketfolly.com/2012/05/notes-from-warren-buffetts-meeting-with.html