Warren Buffett on Long-term Investments

The co-founder at The Smart Investor, Chin Hui Leong covers the powerful investing tips on long-term investments shared by the billionaire business tycoon Warren Buffett in an interview with CNBC.

The most common misconception that people have about investments is that investing in a business is very difficult when compared to investing in a stock. Buffett on the other hand believes in choosing the long-term investments and buying a part or whole of a potentially growing business. According to him, investing in businesses or stakes of businesses for the long-term can be much more rewarding.

Humanity has overcome various deadly pandemics in the past before the COVID-19 outbreak, thus, one should not be influenced by today’s news in choosing the companies that they consider for long-term investments. What goes without saying is that the investors should consider a crashing market as a marvelous opportunity to invest but at the same time refrain from investing without proper research and making a decision on a whim.

“A market downturn could serve up cheaper stocks to buy but it does not give you the license to pick up any stock out there,” said Buffett.

The author acknowledges that the stock you buy has to be a business that you like and it should be selling for a cheaper price due to the market downturn. Besides that, a certain amount of study about investment strategies on your part can be a real game changer.