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