GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
Lets look at four key ways Warren Buffett has foreverchanged the way investors think, according to financial experts.
Buy and Hold for the Long Term
Buffett does not play around.
When he buys into a company, he does so for the long haul.
This is how he makes so much money in compound interest.
He buys in early (ideally) and then lets time do much of the rest of the work.
Dont Hold a Ton of Stocks
Buffett is a strong believer in quality over quantity.
Hes ultra picky and you should be, too.
Examples include Apple and Coca-Cola.
It culminated in a cover story in Barrons asking, Whats Wrong, Warren?
We all know what happened next.
The dot.com crash exonerated Buffett as the high-flying tech and telecommunications stocks returned to earth.
The lesson here is to invest in what you understand, Johnson said.
Hes taught them to not freak out and bail on an investment when the economy gets rocky.
We know now, in part because of Buffetts shining example, to be patient.
Buffett has often said that his preferred holding period is forever, Johnson said.
The greatest advantage of an investor is time.
The wonders of compounding make a relatively small investment grow exponentially over time like the proverbial snowball rolling downhill.
That is, time in the market is much more important than timing the market.
The important thing is finding wet snow and a really long hill.
More From GOBankingRates
Share This Article:
