Warren Buffett’s strategies for investing have never wavered much.
During an interview with ABC, the billionaire suggested three rules for individual investors to follow if they want to see their money increase.
The three rules were:
“If it seems too good to be true, it probably is. Always look at how much the other guy is making when he is trying to sell you something,” Buffett said. “Stay away from leverage.”
It’s true that the average investor has had a hard time timing the market, said Conrad Gann, chief operating officer at TrimTabs Investment Research of Sausalito, California.
Gann said the average investor gotten it backwards, buying high and selling at low, reported The New York Times.
According to the data compiled by his firm, mutual fund investors put in $300 billion in new cash to equity funds from 2002 to 2007 during the market’s highs.
However, when the market started to tank, investors removed $150 billion of assets, with the majority of it taking place after the September market meltdown.
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