“I know what markets are going to do over a long period of time,” says Warren Buffet in a recent clip presented by Asset TV, “they’re going to go up.” But over the short, Buffet says, “I never know what markets are going to do.” This leads to the first of what the video characterizes as his five tips for long term investing, which are:
- Don’t try to time the markets.
- Don’t be afraid of the dips. Buffett says: “we’re a more aggressive buyer [of stocks] when they’re going down.”
- Keep it simple. Buffett says: “I think every business should be run as efficiently as possible, and some are and some aren’t. We try to buy the ones that are.”
- Start young. Buffett noted that he bought his first stock at age 11, a few months after Pearl Harbor.
- Don’t believe the doomsayers. Buffett observes: “the country will grow in value over time; now, who gets it is another question.”