Do Your Own Thing

Jason Zweig of the Wall Street Journal has been mining a new biography of multi billionaire and Obama adviser Warren Buffett to come up with top tips for investing well and becoming rich. First, go your own way. “He does not care whether other people agree with him. He cares only whether his decisions make sense to him, based on his own rigorous research. Do you invest based on what ‘everybody knows’ is ‘true,’ or do you analyze all the evidence yourself?” Timing is everything. “Buffett most likes to buy stocks not when they are going up, but when they are going down.” Which makes this a great time to buy. And, “Buffett’s uncanny ability to stay one step ahead of the markets comes from five decades of working harder on his homework than anyone else. Can you even name the three toughest competitors of every company whose stock you own?” Come to think of it, can you name one stock you own?