Another good article I read today at MSN written by Tim Hanson and Brian Richards for The Motley Fool: Why Buffett is smarter than you
Some interesting portions:
At 77, Warren Buffett is no spring chicken. The fact is, most people his age are looking to get money out of the market rather than put money into it.
Yet Buffett is continuing his life’s work in the same way he always has.
Buffett’s abilities did not develop overnight. It’s been a lifelong process — one that he began at age 11. So while he may be a better investor than we are today, we can at least learn from his experiences and — like he did — become superior investors over time. That means:
* Buying for life (or, at least, the long term).
* Buying small (perhaps our lone advantage).
* Buying based on thorough research and due diligence.
I agreed with the last two: buying small and buying based on thorough research. However I’m not sure buying for life is still valid for today?
“I will tell you how to become rich. … Be fearful when others are greedy. Be greedy when others are fearful.“
— Warren Buffett