WARREN BUFFETT'S 5 INVESTING DON'TS
According to the Oracle of Omaha, sometimes it's about what you DON'T do to make a profit: http://cnb.cx/1iacn9P
- •Don't let world events affect your investing decisionsBuffett said even if he knew a big war was unavoidable, "I will still be buying stock. You're going to invest your money in something over time. The one thing you can be sure of is if we went into some very major war, the value of money would go down. ... That's happened in virtually every war that I'm aware of. ... The last thing you want to do is hold money during a war. During World War II the stock market advanced. The stock market is going to advance over time."
- •Don't go for the quick profit"At any given time, you can make more money, usually, selling the company. ... The answer isn't to sell the company. The answer is to keep running the company well. ... I could do certain things to jiggle up the price of Berkshire in the short run. It would not be good for the company over five or 10 years."
- •Don't feel bad when stocks go downOn a day in March that global stocks markets were reeling from worries that the Ukraine situation could lead to war, Buffett said, "When I got up this morning I actually looked at a stock on the computer, on the trades in London, that we're buying and it's down and I felt good. ... We were buying it on Friday and it's cheaper this morning and that's good news." Will he buy more? "Absolutely."
- •Don't think you have to be an expert to profit from stocksIf you have no expertise at all, Buffett recommends a low-cost index fund that tracks the S&P 500. "Keeping costs to a minimum is enormously important in investing. ... If you're in effect paying out 1 or 2 percent annually of your portfolio, that's a big, big tax that you don't have to pay."
- •Don't put your money into bitcoins for the long run"It's not a currency. It does not meet the test of a currency. I wouldn't be surprised if it's not around in 10 or 20 years. ... It is not a durable means of exchange. It's not a store of value. ... It's been a speculative—a very speculative—kind of Buck Rogers-type thing, and people buy and sell them because they hope they go up or down just like they did with tulip bulbs a long time ago."