What is the best way to learn how to do something really well? Simple, just look at people who excel at that task and copy them.
Let’s look at investing. To build wealth, all we need to do is follow the incredibly simple advice offered by great investors like Warren Buffett, John Templeton and Peter Lynch.
- Invest for the long term in a diversified basket of great businesses,
- Always spend less than what you earn,
- Avoid media predictions and pundits like the plague,
- Have a plan to achieve your goals and update it regularly,
We know that by following these simple (but not easy) steps we will almost certainly build significant wealth during our lifetime. It’s not easy as it requires a patient long-term view with little excitement. It’s not easy because we are swayed by the promise of that silver bullet, that easy and exciting way to get a big short-term return with minimal risk. It’s not easy because we can be so often swayed by the media’s “expert” opinions and predictions. It is not easy because we fall for our own biases such as;
How well do you follow these simple steps to wealth?