7 Investing Rules from Warren Buffett
Key Takeaway #1: Hiring the Right People
- Look for people with intelligence, initiative, and integrity
- Integrity is the most important trait to have in a team member
- Don’t hire smart and energetic people without integrity
Key Takeaway #2: Avoid Following the Herd
- Investors often make decisions based on emotions and past performance
- Avoid being influenced by the actions of others and make decisions based on your own analysis
- Being contrarian can lead to big opportunities when others are making mistakes
Key Takeaway #3: Understanding Your Investments
- Only invest in businesses you understand and their economics
- It’s important to have a good understanding of the business and its future potential
- Avoid investing in things outside of your circle of competence
- The biggest mistakes are often the ones not made, not the ones made