When you are widely considered the greatest investor in the world, people want you to give them advice on what they should do. But in a recent CNBC appearance, Warren Buffett also have some valuable advice on what you shouldn’t do, and CNBC compiled a five-point list.
Several of Buffett’s five “don’ts” involve warnings against being impulsive, or thinking short term, such as, “Don’t feel bad when stocks go down.” Said Buffett, “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.”
Buffett also said investors shouldn’t think they have to be experts to invest successfully. “The stock market just offers you so many opportunities, thousands and thousands of different businesses,” he said. “You don’t have to be an expert on every one of them. You don’t need to be an expert on 10 percent of them even. You just have to have some conviction that either a given company, or a group of companies … are likely to make more money five or 10 or 20 years from now than they’re earning now. And that is not a difficult decision to come to.”
Click here to read the full “to-don’t” list.