5 Warren Buffett investing don'ts

One of the world's most admired investors shares five key no-nos that guide his success.

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VIDEO ON MSN MONEY

198Comments
Mar 10, 2014 9:41PM
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There you go straight from the man, investing over time on good blue stocks or funds is the way to go... now you know, will you do it ??  I have my doubts, most won't, dumb.
Mar 10, 2014 8:01PM
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Another good advise is to have excellent insider info on government legislation affecting the value of stocks. Knowing a few obligated and well placed politicians helps a lot...
Mar 11, 2014 9:57AM
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I think his most important piece of advice is not to let world events affect your investing decisions.  We live in an instant media blitz society.  Why would you let the media decide your investing strategy?  The second most important investing decision is not to allow stock market fluctuations affect your investing strategy.  The markets are easily rattled these days by anything, good or bad.  So why be nervous about that?  The markets always bounce back after a decline.  Be smart and invest for yourself not for anybody else.  Do you honestly think Warren Buffet allows others to make his investing decisions?  No he doesn't.  Don't you either.  As a long time successful investor and the owner of several companies I know this to be true.  
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Vladamir Putin, the most interesting man in international politics,  was quoted:
 "I don't always talk to obama voters, but when I do, ........... I order large fries"!
Mar 16, 2014 9:42AM
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Buffett's critics hate him because he is disciplined enough to make himself & thousands of his fellow shareholders very wealthy.  Quit bitching & whining on Facebook & chat rooms all day & start accepting responsibility for your own decisions in life.   It's called "personal responsibility".  Quit blaming Obama, Bush, & the political parties. 
Mar 17, 2014 1:05PM
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At this stage, Buffett probably profits from every single bit of advice he gives.  This is everything a family needs to know about money:
Step 1: Create an emergency account of $1000
Step 2: List all debt SMALLEST to LARGEST, and Pay off THE SMALLEST FIRST. Then, you snowball the payment (once paid off) into the next biggest, creating a SNOWBALL EFFECT.
Step 3: Save 3-6 months of monthly expenses and at the same time, lower them! Cut car insurance to $25/month (check Insurance Panda), cut gas to less than $50/month (check Gasbuddy), get rid of cable TV (check netflix and aereo).
Step 4: Stash away 15% of income for Retirement
Step 5: Save for KIDS' college savings (at 12%, accounting for inflation rate).
Step 6: PAY OFF THE HOUSE
Step 7: Give, Invest, and Spend your Accumulated Wealth
Mar 10, 2014 9:14PM
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yes, I agree, buffet, is very connected and has grown throughout 60 years, not a problem for me, but I do know, nothing beats inside information and money can find ways.....lets face it we are out of our league here.
Mar 15, 2014 10:32AM
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Can someone post proof of Buffett trading based on inside information?  Not opinion, solid 100%, would hold up in Federal court proof.  Please produce this proof, thank you.
Mar 11, 2014 6:49AM
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When Buffett started investing, REAL Founders led REAL workers to build American Prosperity. Now we have FAKE computers doing algorithms for FAKE Administrators who don't hire and have little or no ability to engage in actual enterprise. Buffett can't tell you how to invest in that, that- is crap.  
Mar 15, 2014 8:19AM
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You have to put that money some where.  Cash goes backward because of inflation and Govt. waste,
If our Govt. was more responsible and WASTED far less many of us would be in favor of "paying our fair share"  but because the corrupt politicians WASTE tax dollars looking for votes to stay in power they hurt our chances of sound investing.  I love my country, it's the Govt. that's too big and too corrupt that makes me sick.
Mar 15, 2014 4:37PM
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Warren Buffett is a shrewd and brilliant investor... this is how he has made his wealth and continues to sustain it. Last time I checked, Berkshire Hathaway Inc. is listed on the S&P 500 index. Hmmmmmm ... 
Mar 11, 2014 10:27AM
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This Week, MSN posted this,

"The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates.


The $30 trillion increase from $70 trillion between mid-2007 and mid-2013 compares with a $3.86 trillion decline in the value of equities to $53.8 trillion, according to the Bank for International Settlements and data compiled by Bloomberg. The jump in debt as measured by the Basel,  in Switzerland-based BIS its quarterly review is almost twice the U.S. economy"



Mar 11, 2014 8:01AM
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1.  Don't let world events affect your investing...tell that to the "sell off" crowd who go for the quick profit!
2.  Don't feel bad when stocks go down...be happy?
3.  Don't think you have to be an expert to profit from stock...just buy one.
4.  Don't go for the quick profit...let me instead!  (See #1)
5.  Don't put your money into bitcoin for the long run...sell off for quick profit!

6.  My best advice...if at all possible...don't spend your money before you have it.


Mar 11, 2014 10:08AM
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Do invest in rail when you have a president in your back pocket to deny permits for pipelines......
Mar 15, 2014 5:33PM
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He can buy all the stocks, business he wants. But he is out to be rich and the hell with the true American.  Case in point, He bought out BNSF railroad. This is a very important source of transportation in our rural ND. It gets our farm commodities to market, ships our coal, and petroleum.

BNSF controls the freight rates, and what will use the rail cars and when. The rail lines are in poor condition. There have been several train derailments in ND and MN in the past year. Including several that included petroleum cars. The farm communities are having trouble getting enough cars to transport the grain, Our sugar manufactures had to stop or slow sugar production, because they can't get the rail to deliver the sugar to the buyers. The Am Track has been suspended at times and schedules limited because of the BNSF use of tracks. 

If he wants to buy things, he has to learn to maintain them, and expand service to the users of his product or service. Not jack up rates and provide lesser service. Farm commodity prices are at a much lower price than they have been in several years. When the farmer wants to sell his grain to an elevator he has to wait if the elevator is full and can not get in any rail cars to ship out what they have in stock. If they have room to take in more grain they are charging a basis which is effected by freight rates.  So let's say the grain market is at $4.00 a bu. and the basis is  $.90 the farmer is getting only $ 3.10 per bu.

Buffet needs to spend some of his millions on his railroad infrastructure,( which would be a tax deduction for him) and run it like a business that will keep his customers happy and in business, rather than charging an arm and a leg for a service that is getting worse by the day.

BNSF has turned out like Wal-Mart's push out all the competitions, than let the consumers later deal with the higher prices, poor quality and service after there is no where else to get the product. That's just my opinion. 


Mar 15, 2014 12:32PM
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Mr/ Buffett is a very smart, agrgressive investor.  Don't think for one minute he doesn't use every trick in the book to make money.  He did receive huge bail out funds in 2008 and got sweet heart deals as he had available cash to snatch up bargains.  His poltical connections are wide and if he every turned quickly to the right or left, Obama's head would snap off.  Mr. Buffett is one of the chosen few to benefit from this country and it move to forward either during times of prosperty or times of distress.  He, Jaime Dimon, Lloyd Blankfien, and the other Financiers all are having their day in the Sun.  Let's pray it the Sun doesn't go supernova because of them.
Apr 15, 2014 10:45AM
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Don't invest anything that Obama has touched! Like GM!
Mar 11, 2014 11:50AM
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He's correct about not investing in bitcoin, but I suspect no more than a fourth of those holding bitcoins are doing so for investment purposes. Most are either today's flavor of the "How You Can Profit From the Coming Devaluation" political crowd (with or without black Suburbans), or the "posse comitatus" no-taxes-no-government crowd, or those seeking to buy/sell assorted arms and weaponry, narcotics, or widely prohibited pornography.
Mar 15, 2014 9:45PM
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Buffett has one big advantage over most investors. He won't ever need the money he is investing to eat or pay the rent. He has no plans or needs to ever spend it on anything.

 

 

Mar 11, 2014 7:46AM
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Thou shalt not listen to idiots who say, "All is well with the economy and stock market."
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