Personal Finance

The Secret to Warren Buffett and Charlie Munger’s Success | Personal-finance

You can put in the work to learn what you don’t know. Take the time to learn about an industry, determine what sets apart the winners and losers, evaluate the stocks of those with meaningful competitive advantages, and continue expanding your circle of competence. There are practically unlimited resources to help you get started investing in stocks.

If you’re not willing to do that kind of work, there are other options that can produce excellent returns.

You don’t have to be a stock market genius

You should feel no obligation to devote your valuable time and brainpower toward becoming the next Munger or Buffett. A better investment of your time, for example, may be improving your professional skills and working toward a promotion at your job.

Buffett calls most non-professional investors “know-nothing” investors. He doesn’t view it as an insult, but as a fact. He once pointed out, “I’m a know-nothing dentist.” We live in an economy that values specialization.

There’s one easy way to get your fair shake of good stock market returns while being a know-nothing investor: You can simply invest in a lot of different stocks. While investors like Munger and Buffett have highly concentrated portfolios with very specific investments, most people will benefit from diverse investment portfolios.

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button