Five Quotes to Help You Invest Like Warren Buffett

If you want to invest like Warren Buffett, you'd be smart to read everything he's ever written... Buffett's annual letters to Berkshire Hathaway (BRK-B) shareholders are available on the company's website dating all the way back to 1977. But most of them are 20-plus pages... So unless you feel like reading almost 1,000 pages of […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Five Quotes to Help You Invest Like Warren Buffett By Sam Latter --------------------------------------------------------------- [There's nowhere to hide]( Things are not getting better. They're getting worse. Investors are in deep trouble. There's nowhere to hide. If you're as confused about what to do with your money as most people are, I strongly urge you to check out Herb's free broadcast immediately. [Click here to see his full analysis for free](. --------------------------------------------------------------- If you want to invest like Warren Buffett, you'd be smart to read everything he's ever written... Buffett's annual letters to Berkshire Hathaway (BRK-B) shareholders are available [on the company's website]( dating all the way back to 1977. But most of them are 20-plus pages... So unless you feel like reading almost 1,000 pages of investing wisdom, today's Empire Financial Daily – which features a handful of Buffett's greatest quotes – is a good start. During periods of market turmoil like the one we've seen for much of the past year, Buffett's sage words of wisdom are more critical than ever. I believe if you study these quotes and start to practice them, it will immediately improve your investing results and keep you from doing something dumb. Let's get started... --------------------------------------------------------------- Recommended Link: [Bill O'Reilly reports on 'the next great medical breakthrough of the decade']( The Gates Foundation, Fidelity, and Elon Musk are going all in on a new development that Inc. magazine says "will change health care forever." [Click here for more on O'Reilly's special report on "the next great medical breakthrough."]( --------------------------------------------------------------- 'Our favorite holding period is forever'... This classic quote is perhaps the most straightforward thing Buffett has ever said, but it's also one of the most important. Buffett also said, "If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes." It's classic advice, and yet the vast majority of investors don't follow it. Between lower commissions, the rise of online brokerages, and more focus on short-term results, the average holding period for stocks has never been shorter. The New York Stock Exchange said investors are holding stocks for an average of 5.5 months, down from about eight years in the 1960s. Take a look... Simply not selling – like Buffett suggests – gives you a huge leg up over the long run. 'The stock market is a device to transfer money from the impatient to the patient'... Similar to the previous quote, this one suggests that long-term investors are rewarded as impatient, short-term "investors" head for the exits at the first sign of trouble. From 1964 to 2017, a $10,000 investment in the S&P 500 Index would have turned into $155,508. That's a 54-year period over which the market grew almost 10% a year – through multiple bear markets and economic recessions. Of course, a $10,000 investment in Buffett (by way of Berkshire Hathaway shares) would have turned into $24 million... But who's counting? The takeaway is simple: Over time, "buy and hold" is the most lucrative – and in theory, the easiest – way to invest. 'I make no attempt to forecast the market – my efforts are devoted to finding undervalued securities'... In the short term, markets fluctuate. We've seen that this year in particular. While the talking heads on CNBC are yammering on about inflation and rising interest rates, everyone seems to forget that over the long term, markets tend to rise. Buffett couldn't care less about the macro environment. Instead, he spends his time looking for great businesses trading at good prices. When he finds them, he backs up the truck. 'We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful'... This is probably the most quoted thing Buffett has ever said, and for good reason. The best time to invest is usually when it feels the worst. And right now, the idea of buying feels pretty darn lousy. A recent survey from the American Association of Individual Investors ("AAII") showed that a staggering 61% of responses were bearish. That's the highest level since the March 5, 2009 survey, just four days before the market bottomed. Additionally, CNN's Fear & Greed Index recently registered a 21 out of 100 – right in "extreme fear" territory. Fear and greed are two of the most powerful emotions when it comes to investing. They can cause investors to sell at precisely the wrong time. Today, investors are as fearful as they've been since the week the market bottomed following the global financial crisis in 2009. If history is any indication, investors who are greedy today will be rewarded over the long run. 'A market downturn doesn't bother us. It is an opportunity to increase our ownership of great companies with great management at good prices'... This is the last quote we'll feature today, and it's the one that should resonate most with investors right now. A study of the financial crisis from Morningstar compared three hypothetical investors. Each started with a $10,000 portfolio fully invested in the S&P 500 in October 2007 through the end of 2021. - The "Nervous Investor" sold all of his stocks during the downturn, went fully to cash, and ended up with just $5,087. - The "Patient Investor" did nothing. He didn't sell anything, but he didn't buy anything, either. He turned his $10,000 into $40,812. - The "Savvy Investor" bought another $10,000 of the S&P 500 at the market low. While this would be almost impossible to implement (as we don't know the market has bottomed until much later), this investor turned his $10,000 into $132,021. Bear markets happen. They're miserable. But how you react to them is up to you... And those who make the right move will reap the rewards. In the most recent quarter, Buffett was practicing what he preaches... Berkshire's latest 13F filing showed that Buffett closed a few small positions and trimmed a few others, but he was mostly adding to his long-term bets. He scooped up millions of shares of energy giants Chevron (CVX) and Occidental Petroleum (OXY), bank Ally Financial (ALLY), media company Paramount Global (PARA), and iPhone maker Apple (AAPL). So if you want to invest like Buffett, don't let the market turmoil scare you out of stocks... I know that for most of you, investing probably feels downright scary right now. However, this is an incredible opportunity to load up on shares of world-class businesses that can help you build long-term wealth in the years ahead. In fact, my friend and colleague Herb Greenberg just took advantage of this situation by launching the newest product here at Empire Financial Research: []Empire Real Wealth. Herb's portfolio launched with nine world-class names that are no-brainers at today's prices. As he puts it... The stocks we've chosen for our inaugural portfolio are one great company after another... They tend to be industry leaders with solid business models, proven track records, healthy balance sheets, and strong cash flows that also happen to be generous with their dividends and are reducing their share count through buybacks. Some are cheaper than others valuation-wise, but on average they trade for less than the S&P 500, pay a higher dividend yield, and boast earnings that are growing at a faster five-year compound annual growth rate ("CAGR"). Right now, we're offering charter membership to Empire Real Wealth for less than you'll probably spend this month on pumpkin spice lattes at Starbucks. [Get the details right here](. Regards, Sam Latter October 10, 2022 --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2022 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 380 Lexington Ave., 4th Floor, New York, NY 10168 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](