Our Top 4 Buffett Tips For Everyday Investors [View Online](=)|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link [This odd income secret isâ¦simply jaw-dropping]( In a word.. this "inflation-proof" income secret is simply jaw-dropping. Not just because it drops fistfuls of cash in your account, almost like magic. But also because it's so easy to execute. A few simple clicks, and about 77 seconds of "work" could be all that stands between you and as much as $1,300 in cold, hard "cash on command." Want to get your hands on this "inflation-proof" income secret? [Click here for the full story.]( June 2, 2022 Our Top 4 Buffett Tips For Everyday Investors By Brad Briggs As one of the most successful investors of all time and one of the richest men on Earth, Warren Buffett has offered a lot of wisdom over the years. And while there's a lot of wise words to choose from, his timeless principles over the years have made his reputation in the investing community as good as gold. And rightfully so. Buffett's Berkshire Hathaway investment portfolio has averaged staggering annual returns of 20% per year since 1965 -- doubling the average annual return of the S&P 500 over the same period. In other words, every $100 invested with Buffett then would be worth nearly $1 million today. With a track record like that, it's worth examining some of Buffett's sage investing advice to see how we might improve our own portfolio performance. After polling some of our StreetAuthority experts, I came up with a few of our favorite lines from Buffett over the years... -[]Recommended Link [Interested in more income? Read THIS NOW]( While dividend aristocrats like McDonald's and Coca-Cola can be mighty generous in the long run, there's just one big problem: You have to wait 90 days to receive your payout from them. And let's face it-sometimes you simply can't (or don't want to)wait that long for your money. Now⦠you don't have to. [Discover 12 ultra-generous income stocks that payout every 30 days.]( 4 Warren Buffett Quotes To Invest By... 1. "Our favorite holding period is forever."
It may not be trendy or sophisticated... But buy-and-hold investing -- Buffett's favorite strategy according to Berkshire Hathaway's [1988 letter]( -- is one of the few strategies actually proven to consistently make money over the long term. The proof comes from an Oppenheimer [study](, which found that the S&P 500 never suffered a loss over any 20-year period going all the way back to 1950. The extensive study also showed that short-term investing can be a bad idea, as the S&P 500 lost money 16 times in a one-year-period since 1950. [buffett]2. "If a business does well, the stock eventually follows."
Don't just buy stock if you want strong returns. Buy shares in a business you'd be proud to own, and be prepared to reap the rewards. Much of Buffett's investing success has come from buying well-managed companies with solid economic moats (i.e. lasting competitive advantages), consistently high return on equity (ROE), and low debt. He also admires companies with leaders that readily admit mistakes, have the interests of shareholders at heart, and own a large portion of the company themselves. (You can see Buffett's full criteria on page 23 of his [2014 shareholder letter](.) 3. "Investment must be rational; if you don't understand it, don't do it."
Buffett advocates owning established companies with household name brands and understandable business models. One look at Berkshire Hathaway's portfolio should illustrate this point, as well-known and simple companies like Coca-Cola (NYSE: KO) and American Express (NYSE: AXP) continue to be some of its largest holdings, making the firm ten times (or more) than the original investment. It doesn't always work out, though... Buffett famously missed out on the initial big run-up in tech stocks like Apple and Amazon -- but that's because he always admitted that he didn't quite understand tech. It was only years later after bringing on trusted, experienced money managers into the firm that he later decided to invest in Apple, for example. The point is most investors would be better off knowing when to "stay in their lane" and avoid what they don't know, too. 4. "Diversification is protection against ignorance. It makes little sense for those who know what they're doing."
Yes, it's true Buffett recommends that non-professional investors buy shares in diversified, low-cost S&P 500 index funds to avoid risk. But how can you beat the broader market when your portfolio is the market? Buffett compares this to putting Lebron James on the bench during a basketball game: "If it's your game, diversification doesn't make sense. It's crazy to put money into your 20th choice rather than your 1st choice. It's the 'LeBron James' analogy. If you have basketball phenom LeBron James on your team, don't take him out of the game just to make room for someone else." In other words, if you know an industry well (or work in it), you may have a better-than-average chance of spotting a good company and thus a potentially market-beating stock. And if you're picking your own stocks, then it's far more likely you've come up with only one or two really good ideas than a dozen. So as long as you're aware of the risks, it can really pay to be "overweight" on your best ideas. The Takeaway We can argue whether Berkshire Hathaway itself is a "buy" today, but there's no denying that we can all profit from Buffett's wisdom. Learn from the man himself and try to adapt his principles to form a sound, profitable investing strategy. In short: Buy well-managed companies with wide moats, understandable business models, and in industries that you know well. P.S. Our colleague J.R. Butts has been researching the "next investment frontier" in tech for the past few months. And he's convinced this is the "next big thing"... You may already know that Elon Musk is busy commercializing outer space with his company, SpaceX. Dozens of other companies are scrambling to win the race, too. But what's barely getting any attention in the mainstream press is one of Musk's "secret" projects that could be an absolute game-changer. And J.R. has discovered a unique "backdoor" way we can gain exposure before the crowd catches on... [Go here now to find out more...]( -[]Recommended Link [Bigger than 5G or AI?]( [Bigger than 5G or AI?]( TRILLIONS of dollars are flowing into what could soon be the biggest-and most profitable-growth sector of the economy. Buffett, Gates and Bezos are all betting billions in this one sector⦠and surprisingly, it's not AI, 5G or any space related stocks⦠but this single sector could hand out HUGE profits in the coming months. Exactly how much is on the table with this opportunity? [Get the full story here.]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. Members of our staff are restricted from buying or selling any securities for three days after being featured in our advisories or on our website. StreetAuthority is a publisher of financial news and opinions. StreetAuthority is not a securities broker/dealer or an investment advisor and we do not recommend or endorse any brokers, dealers or investment advisors. This work is based on SEC filings, current events, interviews, corporate press releases and publicly available information which may contain errors. All information contained in our newsletters and/or on our website(s) should be independently verified with the companies or sources mentioned. You are responsible for your own investment decisions and should always conduct your own research and due diligence and consider obtaining professional advice before making any investment decision. This message was sent by an automated message delivery platform. Please do not reply to this email address. Any messages sent to this address will be automatically deleted. We sincerely hope that you benefit from your subscription to this complimentary newsletter, and we're willing to do whatever it takes to keep you as a satisfied subscriber. You may contact our customer service department by [visiting this link](. To update your subscription or unsubscribe, please [click here](. Copyright (c) 2022 StreetAuthority, 7600A Leesburg Pike, Suite 300 Falls Church, VA 22043. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited. [Terms]( | [Privacy]( | [Unsubscribe](