Warren Buffett Warns Amateur Investors Against This Common Mistake
Oct 30, 2013, 01:37 IST
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The Oracle of Omaha warns investors against an incredibly common mistake: You shouldn't try to time the market. He says it's a mistake to predict or listen to others who predict the short-term movement of stocks. By the same token, he says you shouldn't try to flip stocks like high-frequency traders do.
Instead, Buffett says the best thing the average investor can do is buy an index fund over time. That's it. From USA Today:
As Shell points out, Buffett has become one of the world's wealthiest people by following extremely simple philosophies. He buys into solid businesses that he can easily understand and holds onto the investments for long periods of time. According to him, doing decently well in stocks is "very, very easy." Read the rest of the article here.