{"id":665,"date":"2022-02-18T10:00:25","date_gmt":"2022-02-18T10:00:25","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/towerwealthadvisory\/?p=487"},"modified":"2023-11-28T21:37:21","modified_gmt":"2023-11-28T21:37:21","slug":"the-timeless-wisdom-of-warren-buffett","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/2022\/02\/18\/the-timeless-wisdom-of-warren-buffett\/","title":{"rendered":"The Timeless Wisdom of Warren Buffett"},"content":{"rendered":"\t\t
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\n\nWe may all benefit from some investing perspective as we enter into 2022. Who better to draw on for that wisdom than one of the most successful investors of our time, Warren Buffett. Many of Buffett\u2019s messages are timeless.\n\nDownload PDF Version Here<\/em><\/strong><\/a>\n\nIn fact, a more recent academic study analyzed years of Buffett\u2019s shareholder meetings, which\nhave attracted tens of thousands of investors from around the world, and confirmed that the Oracle of Omaha\u2019s key messages\nhave recurring themes.\u00a01\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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\n\nHere are four:<\/strong>\n\nDon\u2019t overlook the power of patience in investing.<\/strong>\u00a0After a year of strong performance in the equity markets, it may be easy to forget that success in investing can often take time. Consider that even though Buffett has been investing since he was young, over 90 percent of his wealth was made after the age of 65.\u00a02\u00a0Time and the power of compounding continue to be the key drivers of wealth creation.\n\n\u201cThe nature of compound interest is it behaves like a snowball\u00a0<\/em>of sticky snow. And the trick is to have a very long hill.\u201d<\/em>\n\nInvest with a view for the longer term.<\/strong>\u00a0When Buffett invests in a company, he views himself as an owner and takes a thoughtful and longer-term view of its prospects. He worries less about what happens in the short term, and focuses on businesses that continue to have a competitive advantage over the longer term.\n\n\u201cNobody buys a farm based on whether they think it\u2019s going\u00a0<\/em>to rain next year. They buy it because they think it\u2019s a good\u00a0<\/em>investment over 10 or 20 years.\u201d<\/em>\n\nMaintain self-discipline.<\/strong>\u00a0Buffett has always said that temperament is key to investing. In this digital age, in which we are constantly being fed news and opinion, Buffett reminds us that investing requires the ability to detach from the views of others and make decisions based on the facts.\n\n\u201c<\/em>You need to be able to look at the facts about a business, about an industry, and evaluate a business unaffected by what other people think. That is very difficult for most people\u2026<\/em>\n<\/em>\n\nDon\u2019t do anything in life where the answer is, \u2018everybody else is doing it.\u2019 If you cancel that as a rationale for doing an activity in life, you\u2019ll live a better life whether it\u2019s in the stock market or any place else.\u201d<\/em>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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\n\nHave a plan and stick to it during good\u00a0<\/b>times and bad.\u00a0<\/b>Buffett\u00a0has always emphasized the\u00a0importance of having a plan in\u00a0place to drive the investment\u00a0process and prevent\u00a0emotions from influencing\u00a0decision making. In strong\u00a0market times, such as those\u00a0experienced this past year, it\u00a0can help to prevent investors\u00a0from taking undue risks due\u00a0to the fear of missing out.\n\nRisk controls remain an important part of every investor\u2019s wealth\u00a0 plan. In down-market times, adhering to an investment plan can\u00a0 help investors avoid the urge to sell investments because of the\u00a0 pressure from others doing the same.\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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\n\n\u201cTo invest successfully over a lifetime does not require\u00a0 a stratospheric IQ, unusual business insights, or inside\u00a0 information. What\u2019s needed is a sound intellectual framework\u00a0 for making decisions and the ability to keep emotions from\u00a0 corroding that framework.\u201d<\/i>\n\nIn Looking Forward\u00a0\u00a0<\/b>\n\nDuring the height of the pandemic, Buffett offered his\u00a0 perspectives on overcoming the challenges, with a continued view\u00a0 of optimism for the future. These words may be worth repeating\u00a0 as we begin another year, with the hope that the worst of the\u00a0 pandemic is now behind us:\n\n\u201cThis is a terrible event. But there will be other things that\u00a0 happen in the world in the next 5, 10, or 20 years. That\u2019s how\u00a0 the world works; it\u2019s not a totally even course. The progress of\u00a0 mankind has been incredible and that won\u2019t stop\u2026there will be\u00a0 interruptions, but I also know that we\u2019ll come out better on the\u00a0 other end.\u201d<\/i>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Thank you to Warren Buffett for allowing us permission to share his timeless wisdom.\u00a0Please note that the material is copyrighted and has been used with permission of the author.\n1.https:\/\/markets.businessinsider.com\/news\/stocks\/warren-buffett-key-\u00a0investing-tips-holding-cash-patience-shares-business-2020-10-1029698894;<\/h6>\n
2. Based\u00a0 on shares of Berkshire Hathaway (BRK-A) \u2014 8\/30\/95: $25,300; 11\/23\/21: $434,921.<\/h6>\n<\/div>\n<\/div>\n<\/div>\n
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The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable.\nThe information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual\u2019s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.\n\u00a9\ufe0f 2023, Wellington-Altus Private Wealth Inc. ALL RIGHTS RESERVED. NO USE OR REPRODUCTION WITHOUT PERMISSION<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

We may all benefit from some investing perspective as we enter into 2022. Who better to draw on for that wisdom than one of the most successful investors of our time, Warren Buffett. Many of Buffett\u2019s messages are timeless. Download PDF Version Here In fact, a more recent academic study analyzed years of Buffett\u2019s shareholder […]<\/p>\n","protected":false},"author":68,"featured_media":772,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[27],"tags":[37,67,14,109],"class_list":["post-665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-finance","tag-financial-planning","tag-investment","tag-warren-buffett"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/comments?post=665"}],"version-history":[{"count":3,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/665\/revisions"}],"predecessor-version":[{"id":825,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/665\/revisions\/825"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/media\/772"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/media?parent=665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/categories?post=665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/tags?post=665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}