Investing Rules from Warren Buffett

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

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