How To Invest Like Warren Buffett – How would you like to be able to invest like Warren Buffet? It would be incredible to be able to get inside that man’s head and see how his investment mind works. Who knows, if you could just implement a few of his strategies correctly maybe you could make a nice little gain on your money.
We all know Buffet’s investment principles work, just look at him. He’s the billion dollar man. But will any of his strategies work for the average investor?
How To Invest Like Warren Buffett
How To Invest Like Warren Buffett
Yes, there are some things the small investor can do to be more like the “The Oracle of Omaha”. But you must be disciplined, and having patience wouldn’t hurt either. After all, you can’t become a billionaire overnight. It takes some time.
Here are a few Warren Buffet like strategies that most average investors can use to help build their money:
1) Pay Down Your Debts – Especially credit card debt. When you owe, your lenders are making money off you. Money you pay your lenders could better be used to make you money. Most credit cards charge upwards of 16% per year, after inflation. That’s 16% you’re paying using after tax dollars. Get rid of that debt, and that’s 16% you have earned.
2) Invest In A 401K – Does your company or employer have a 401K you can sign up for? Putting money into a 401K is one of the best ways to invest your money. The matching dollars you get back, give you a 100% return on whatever you contribute. A 401K also gives you a tax break, very smart.
3) Get A 30 Year Mortgage On Your Home – There are 30 year fixed rate mortgages available with interest rates as low as 4.1%. That is quite a good deal.
So you’re doing all of that and you still want more? Want to know some specific stocks that Buffet likes? OK, here are some stocks you can look at. These are a few stocks that Warren Buffet has in his portfolio. But remember, these are long term positions.
1) Kraft Foods – Buffet has more than three billion dollars invested in this food processing giant.
2) U.S. Bancorp – This is the sixth largest bank in the US. Buffet currently owns shares valued at over two billion dollars.
3) Wells Fargo – This is Buffet’s favorite bank stock. He has been buying it for years.
4) Sanofi – Buffet owns about 2% of this French drug manufacturer. Sanofi makes the sleep aid Ambien.
5) Berkshire Hathaway (B) – Almost nobody can afford Berkshire Hathaway (A) at over $100,000 dollars a share. So the next best thing is Berkshire Hathaway (B) at around $75 dollars a share.
Well, there you are. This concludes our lesson on how to invest like Warren Buffet. Now, go out and make your billions! - How To Invest Like Warren Buffett
I realize his holdings in Bershire is more diverse, but these few stockss are not very diverse. Two banks, food, drug and BH.
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