| Written by a human (me), not Ai.
When starting off my career as an investment manager, I would read Warren Buffett’s annual shareholder letters like a textbook.
His wisdom was much more valuable than our recommended research from investment banks like Goldman Sachs or JPMorgan (despite the latter being my employer).
Buffett’s philosophy helped create my system for proven wealth accumulation and income, done properly. And I use this today: both personally and for my investors to implement our copy-and-paste system.
Sadly, Buffett just announced he will not be writing any more shareholder letters. A real end of era.
The Results Say it All …
Buffett’s philosophy has created returns of 19.9% per annum, on average, since 1965. That would turn a $1,000 investment into $44million!
That happened despite: multiple bubbles, recessions, crashes and crises.
How?
Buffett’s success wasn’t necessarily down to his intellect or knowledge (both are vast).
It was simpler: driven by how he invested and stuck to proven principles. Which are timeless and effective. Hence, this might be your most important read this weekend!
7 Most Important Buffett Lessons
To mark the end of an era, here are 7 Actionable Buffett lessons every investor should embrace – including how they show up in our InvestLikeAPro system of investing.
1. Eliminate Complexity
Buffett knows complexity is the enemy of good investing and returns. All successful investment strategies should be repeatable, consistent and easily implemented.
Reflecting this, I created our GPI Portfolio System that provides 3 essentials for every portfolio: Growth, Protection, Income.
GPI is a clean set-and-forget way to create a balanced, diversified portfolio that compounds quietly in the background and provides income for those that need it.
Our system cuts out noise, overwhelm, and gives investors a professional structure without complexity or high hidden fees.
Academy members build their own GPI portfolio using our copy-and-paste system.
2. Think in Decades, Not Days
Buffett has managed investments through crises, recessions, bubbles and volatility.
Including all that, his investment philosophy still returned 19.9% per annum, on average.
Buffett doesn’t care about short term volatility. In fact he uses it to his advantage. Which is how his long term track record became outstanding.
That’s the lesson many investors still miss.
Remember – Your investments exist to support your future financial security: your retirement, freedom, and peace of mind in later years.
Those outcomes need a long-term horizon, not short-term trading or reacting to headlines.
The investors who achieve those objectives stay calm, stay invested, and think in decades – not days.
Our Investment Academy helps you build a portfolio and mindset designed for your long-term security.
3. Fees Are the Enemy of Compounding
Buffett proved this when he famously beat hedge funds with a simple index fund bet. Proof that fees destroy returns.
He has also instructed his executors to invest his estate in low-cost passive tracker funds and ETFs.
One of our major key foundations is this exactly: minimise cost leakages at all times.
We regularly review our investors’ portfolios and save them £thousands in fees annually – helping them identify hidden and unnecessary fees that will compound to £tens or £hundreds of thousands, over a lifetime.
And then, instead, we help them create a low-cost, highly performing portfolio.
4. Time IN the Market beats TIMING the Market
Buffett never tried to predict next week’s prices. He focused entirely on long-term compounding.
His almost 20% annual return is the result.
We show investors how to automate pound-cost-averaging. That cuts out market monitoring, overwhelm and emotion.
5. Diversification Protects You
Buffett is famously a stock-picker. He likes to acquire and control companies.
But even Buffett says most investors (including his executors) should own diversified, low-cost index funds and ETFs.
At InvestLikeAPro, we don’t just own stocks.
We also own Gold, Money-Market Funds, Government Bonds, Options, Commodities, REITs and solid blue-chip High-Dividend companies.
This creates a balanced, diversified and passive portfolio. With low-cost ETFs and funds.
Our investors receive a complete copy-and-paste blueprint for a balanced and diversified portfolio.
One that will perform better than a managed portfolio or pension – and much cheaper.
6. Cash is Trash: It’s Slowly Losing Value
Buffett has warned many times of inflation quietly destroying purchasing power.
And remember, inflation is much higher than we are told by the official numbers.
In the Academy, we help investors identify their ideal “cash buffer” and put the rest to work.
7. Income + Growth = Financial Freedom
Buffett built a portfolio with predictable cash-producing investments. He loves income and cash-flow.
Did you know that Buffett is an active investor and fan of Options?
He famously (and very profitably) used options to enter the market in a risk-controlled way, during the heat of the global financial crisis.
At InvestLikeAPro we have a number of tools for income generation: Quality High-Dividend stocks, REITs and Options for controlled monthly income.
The Options Income module is a major part of the programme. It teaches you to earn income in a risk-controlled way.
In Summary …
Buffett may be stepping down, but the principles that built his outstanding success will never change: Low fees. Simplicity. Diversification. Income. Discipline.
Learn how to create a passive, growth & income portfolio with our copy-and-paste GPI System.
It draws upon Buffett’s best principles and philosophy to let your assets work for you, not the other way around.
The Investment Academy has transformed how thousands of people now invest.
Book a Call with me to learn more or ask any questions about your investment strategy.
And Finally – My Discussion on Property Investments
A couple of weeks ago I wrote about property investing.
Since then I appeared on the WealthTalk podcast to discuss this topical subject. Click here to listen to it.
In the discussion we talked about:
- Is Property Still Worth It?
- The Rise of Passive, Diversified Investing
- Gold, Bonds, and Defensive Assets
- Mindset, Control, and Personalisation
- Actionable Strategies for Wealth Builders
Always Remember:
- Time in the Markets always beats timing the markets
- Stay Diversified
- Minimise those leakages: Fees, Inflation, and Taxes
- Financial Markets are a great source of recurring income
- ETFs, Balanced Funds and Options achieve all the above
- Being educated helps you outperform 99% of the population
… to ensure your investments work for YOUR financial freedom (not someone else’s)
And …
For more guidance, our Investment Academy will help you implement all of this in a step-by-step way.
Thousands of people have learnt how to diversify and pound-cost-average into low-cost, set-and-forget ETFs & Funds for inflation-beating growth. And Options to create recurring income.
Click here to learn about our Investment Academy
Finally …
– Don’t take the above as advice as it may not apply to you personally
– Your Capital is at Risk
– You may not be covered by the FSCS
– Anything mentioned in a podcast or in a previous article was valid at that time and may not continue to be now |
