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Five iconic Buffett investing lessons

We give you investing lessons from one of Buffett's most famous interviews

Warren Buffett's 5 golden rules of investing - Essential insights

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Warren Buffett, the investment maestro behind Berkshire Hathaway, once shared his golden rules of investing in an interview that's nothing short of a masterclass. These gems from the "Oracle of Omaha" are not just about amassing wealth; they're about being savvy and grounded in your investing journey.

Here are five standout lessons from the interview.

Keep your cool

"Being a sound investor really just requires a certain control of your temperament and the ability to know what you know and what you don't know and occasionally act."

This wisdom emphasises the importance of emotional stability in investing. Investors should aim to remain neutral, not getting overly excited in market upswings or too discouraged during downturns. It's about having a steady, consistent approach.

Slow and steady wins the race

"It requires patience which a lot of people don't have... If you are short-term greedy you probably won't get a very good long-term result."

Buffett points out that patience is key in investing. The desire for quick profits often leads to poor decisions. Long-term thinking, focusing on steady growth and sustainable outcomes, is more beneficial than seeking immediate gains.

Business smarts over market charts

"If we're right on the business, the market will take care of itself."

This lesson underscores the value of understanding a business's fundamentals over market fluctuations. Solid, well-managed companies tend to perform well over time, regardless of short-term market movements.

Expect the unexpected

"You ought to conduct your affairs so that if the most extraordinary events happen, you're still around to play the next day."

Buffett advises being prepared for any market scenario. This involves having a well-thought-out plan and safeguards in place to handle unexpected market changes, ensuring long-term investment sustainability.

Love what you invest in

"We like managers who are in love with our businesses."

Choosing companies with passionate, committed management is crucial. A dedicated management team is often a key driver of a company's success.

While these five lessons offer a taste of Buffett's wisdom, they are merely appetisers. The full interview is a banquet of insights, filled with more of Buffett's valuable advice and witty anecdotes. For anyone eager to learn from the master himself, watching the entire discussion is a must. Dive into the full interview here.

Also read: Seven investing sins

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