4 Rules For Investing by Warren Buffett

Emulate an expert.

Last February, Warren Buffett wrote an annual letter and shared tips from his experience in investments. We picked out four and simplified them to boost your current knowledge.

Knowledge Key

RULE #1 Expertise is not a requirement but simplicity is.

Buffett claims we do not need to be experts to have good ROI. However, an investor should know his or her boundaries and take logical paths that work. Think simply, do everything simply and do not make potentially risky decisions.

When guaranteed to get rich quickly, be a “no” respondent.

RULE #2 Omniscience is not necessary, understanding your asset productivity is.

We are unable to assess every investment opportunity, but knowing everything is not mandatory. Instead, understand the decisions you make and the actions you perform. Focus on what and how your selected asset will earn for you in future.

Move on when you do not see the prospects of great ROI.

RULE #3 Be unsuccessful in speculation.

In your contemplation to buy, do not center your attention on the probable price change in future; for that is speculation. Never be capable of speculating successfully, and do not be convinced by those who are. Directly quoted from Warren Buffett, “Half of all coin-flippers will win their first toss; none of those winners has an expectation of profit if he continues to play the game.”

In recent events, if an asset has appreciated, do not purchase it.

RULE #4 Disregard what commentators opine.

Read and listen no more market forecasts by others. Do not hold onto large-scale beliefs. Such broadcasted details give you vague impressions of the real, imperative facts that determine the success in your investments.


Jade Lee is the Chief Editor of Giants Learning Technologies. Her life purpose is to help; thus committing to youths like herself through articles regarding early financial planning. Jade is an alumnus of Ngee Ann Polytechnic where she attained a Diploma with Merit in Early Childhood Education, having dedicated three years in understanding preschool children. Under a scholarship, she reads Bachelor of Arts in Psychology from Nanyang Technological University. Jade is also a commercial model and engages in Hip-Hop dance. Find out more about her insights via jade@theageofgiants.net


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