Warren Buffett is the biggest name in investing, hands down.
He may not quite be the richest person in the world, but he’s certainly up there. Furthermore, when it comes to the investing world, as mentioned, Buffet is king.
How did he make all of that money, and how can a man in his 80s continue to run a conglomerate company of investments like Berkshire Hathaway without missing important moves?
Going his own way
People’s lives change, and you would think Buffet might act like an old school investor. In other words, is he up on all the tech stocks driving the market? You don’t have to be, and to answer that question, Buffet has proved it.
For the most part, he has largely ignored tech stocks and is really big on more traditional investments. Given that, could Buffet start over now without all of his billions and make it up to the top given that we live in a tech world?
First of all, Buffet’s traditional stock buys have fared well for him. There are numerous stories of him investing large sums in companies that then start to thrive.
Of course he had to at some point just started out and bought his first share of stock. What stock did he buy? What moves catapulted him to be the investor that he is today?
If you ask the big shots, they are going to start talking about moves that he made once he was an established investor. He made some big ones that grew his assets, but how does the average investor look at what Buffet did and find common ground?
I will tell you, and it is certainly very simple. It is just not something many people are either willing, able or geared to do.
Buy and hold – Play the long term game
Warren Buffett is a buy and hold strategist. In 2009, Sirius XM was facing bankruptcy after the companies merged. Did Buffet want that spec stock? No, it was my play though, and myself and a lot of other investors made some good money.
However, once the ticker price went above five dollars, Buffet jumped on the train. By then, the company started paying out a dividend, and Buffet socked 850 million into the stock.
He is going to ride Sirius XM as a stock in a different way. And wouldn’t you know, it’s going to pay off for him. If you are looking for an investment move, you just found one.
It is up to you how you approach investing, but you do need to exercise restraint, keep building and keep your emotions in check, just like if you are running a business. That is what is going to make you a smart and calculated investor.
If you can make the right moves and stomach the bad ones without throwing in the towel, you will continue learning and growing. And for the record, if you invest like Buffet did in today’s economy, it is difficult to even make bad moves. You just would want to stay away from spec stocks.