7 Secrets to Investing Like Warren BuffettPaperback (2024)

FAQs

What 4 stocks is Warren Buffett buying? ›

Buffett said he revises his will every three years, and he still advises his wife to allocate 10% of her inheritance to short-term government bonds and 90% to a low-cost S&P 500 index fund.

Graham pushed the idea of buying stocks at a discount from their intrinsic value. He named the discount the "margin of safety" and considered it an important protective measure. If the stock were already undervalued, it would be less likely to experience major declines.

What Is a 70/30 Portfolio? A 70/30 portfolio is an investment portfolio where 70% of investment capital is allocated to stocks and 30% to fixed-income securities, primarily bonds.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”

Famously frugal Warren Buffett has always been clear his billions won't go to family—it'll be invested in charitable foundations, a fitting end to a career of philanthropy. It's a process Buffett will have overseen more closely this year, following the death of his right-hand man and dear friend, Charlie Munger.

There are no set ages to get into or to get out of the stock market. While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

The two investments held in Berkshire Hathaway's portfolio that Buffett recommends more than anything else are two S&P 500 index funds. The SPDR S&P 500 ETF Trust (SPY -0.00%) and the Vanguard S&P 500 ETF (VOO -0.02%).

Ramsey recommends investing first in a tax-advantaged account like a 401(k) or 403(b) from your employer. The goal should be to allocate about 15% of your gross income toward good growth mutual funds that will help you save up enough to live your desired lifestyle in retirement.

Graham adds investing on margin and chasing hot stocks to that list of speculative endeavors. Graham advises an allocation of no more than 75% and no less than 25% of your money in high-grade bonds and common stocks, with the simplest choice being 50-50.

What is The Intelligent Investor method? ›

Some of the most innovative ideas presented in 'The Intelligent Investor' include the concept of 'value investing'. This involves buying stocks at a price less than their intrinsic value and holding them until the market recognizes their true value.

“You're looking for three things, generally, in a person,” says Buffett. “Intelligence, energy, and integrity. And if they don't have the last one, don't even bother with the first two.

He looks at each company as a whole so he chooses stocks based solely on their overall potential as a company. Buffett doesn't seek capital gain by holding these stocks as a long-term play. He wants ownership in quality companies that are extremely capable of generating earnings.