Top Notch Investing Tips

An economic recession is the best time to invest because companies are hurting for business and are eager to get new clients. In addition, stock prices are lower so you will get more for your buck by purchasing shares at lower prices.

You will need at least 70-80% of your income during retirement so contribute as much as you can each year. It is never too late to start investing, it’s better to have a small amount than nothing at all. Here are 9 beginner investing tips.

1. Sign up for your employer's retirement plan and use the matching contributions benefit.
2. Setup a separate IRA using automatic paycheck deduction to help reduce taxes and in the event your employer goes bankrupt. Invest with an established investment company or brokerage company such as Charles Schwab or Price Waterhouse Coopers and ask questions about your investments.
3. Invest in mutual funds if you are not knowledgeable about investing.
4. If you have some extra money to play around with you can invest in companies that never go out of business: grocery stores, oil companies, car repair shops, pharmaceutical companies, information technology companies, etc.
5. Diversify your portfolio to minimize losses. Put a portion of your money in stocks/mutual funds, a portion in low risk investments such as bonds and a portion in medium risk investments such as large cap funds, etc.
6. Review your retirement statement to check for any errors.
7. Educate yourself and know at least the basics about investing so you will know whether your financial advisor is providing you with correct advice.
8. Find an investing mentor or role model. Ask questions and get advice on investing and how to grow you money in the stock market.
9. Gain additional knowledge by reading books by investing experts and watching financial television shows or reading articles on financial websites.

Warren Buffet's Investing Style

I am a big fan of Warren Buffet. However, being a fan doesn’t mean I agree with everything he does or with all of his beliefs. I do admit that he is knowledgeable about investing. It has been stated that “he invests long-term and understands what he invests in”. It is essential that with anything you do or anything you put your money towards you understand. Many homeowner signed mortgage loans and didn’t understand what they were getting in to. As a result they foreclosed on their homes.


LouAnn Lofton wrote a book entitled, “Warren Buffet Invests Like a Girl”. Well, if he does, then all men need to follow his advice too. I think Warren Buffet is a great investor who doesn’t get emotional about investing. His investing is very strategic which was displayed when he bought shares of Goldman Sachs in 2008 for $5 million which made his company Berkshire Hathaway millions. Here is some background information on Buffet:

1. Carried golf clubs at age 9 for $3 a day

2. Bought his first share at age 11

3. Sold used golf balls from age 11-13 and sold newspapers at age 13

4. Bought a small farm which was 40 acres at age 14 with savings from delivering newspapers

5. Rented out used pinballs machines at age 16 making $50 a week

6. Bought Berkshire Hathaway in 1962

7. Bought stock in Coca-Cola, Disney, McDonalds, Gillette, American Express and Dairy Queen

8. Follows 6 Principles: 1) keep it simple, 2) be an investor not a trader, 3) find outstanding business, 4) make your own decisions, 5) leave a margin of safety, 6) Rule 1: never lose money, Rule 2: never forget rule #1, focus on strengths.

9. Still lives in the same small 3-bedroom house in Omaha that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

10. Don't buy more than what you "really need" and encourage your children to do and think the same

11. Drives his own car everywhere and does not have a driver or security

12. You are what you are

13. Never travels by private jet, although he owns the world's largest private jet company

14. Always think how you can accomplish things economically

15. His company, Berkshire Hathaway, owns 63 companies.

16. Does not socialize with the high society crowd. After he gets home is to make himself some popcorn and watch television.

17. Don't try to show off, just be yourself and do what you enjoy doing

18. Does not carry a cell phone and does not have a computer on his desk

19. Stay away from credit cards (bank loans) and invest in yourself

20. Money doesn't create man but it is the man who created money

21. Live your life as simple as you are

22. Don't do what others say, just listen them, but do what you feel good

23. Don't go on brand name; just wear those things in which you feel comfortable

24. Don't waste your money on unnecessary things; just spend money on those who are really in need

Do you still think Buffet invests like a girl? Let me know your feedback.