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3 Things Warren Buffett Said This Year That Could Help Investors

Investing icon, Warren Buffett, is probably the most recognisable investor today. Despite his fame and success, he still humbly takes the time to sit down with interviewers and candidly speak about his investments and insights.

This year alone, he has spoken publicly numerous times about current market conditions, investing strategy and more. Here, I take a look at three interesting things that Warren Buffett has said this year.

  1. “but you (are) making a terrible mistake if you stay out of a game that you think is going to be very good over time because you think you can pick a better time to enter it.”

The above was Warren Buffett’s response when asked about whether investors had missed the boat because the Dow Jones Index had breached the 20,000-point threshold.

It is impossible to time the market, and staying out of the stock market just because you believe you can enter at a lower entry point is a bad idea. Even though the stock market is trading at record highs, investors should be aware of the upward nature of stocks and the tendency for it to rise even further in the long-term.

  1. “If you mix your politics with your investment decisions, you’re making a big mistake.”

Warren Buffett believes that politics should play no part in your long-term investment decisions. Instead, we should focus on whether the individual investment we own has a sound, growing business that is well-managed.

Too often, investors are distracted by noises that do not have much of a long-term impact on our investment returns.

  1. “I’ve written a couple of times when I thought things were getting out of hand on the high side. And that’s not now.”

Although some investors are worried that the stock market is over-valued at the moment, Warren Buffett thinks otherwise.

He has mentioned numerous times that the stock market valuation is dependent on the interest rates. The lower the interest rates, the higher the price investors should be willing to pay for stocks. At current interest rates of just around 1.25%, the stock market, in Warren Buffett’s opinion, looks very reasonable.

Having said that, he did warn that if interest rates rise, which they could do, then stocks might go lower.

The Foolish bottom line

Warren Buffett is one of the greatest investors of our generation. Despite his success, he still takes the time to do interviews and give advice to eager listeners. Even now, he still has much to share with the world. Hopefully, these three quotes from Buffett can help all of us become better investors in the future.

Meanwhile, for more (free!) investing insights, sign up here for your FREE subscription to The Motley Fool's investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Jeremy Chia doesn't own shares in any companies mentioned.