This week, I’m talking about 5 lessons that Warren Buffett can teach us about being successful investors. 

Warren Buffett is arguably the greatest and most successful investor of all time. He is still an active investor today, and luckily for us, has immortalized a lot of his investment acumen through shareholder letters, countless TV interviews, and several books written about him and his investing principles. 

Today, I’m sharing with you lesson #1 from Mr. Buffett - Invest in what you know. 

Buffett is famous for investing in boring businesses that he understands well. His company, Berkshire Hathaway, owns part or all of many businesses that are about as exciting as watching paint dry: 

Toothpaste & ketchup makers, restaurants, airlines, credit card companies, soft drink makers, & banks. 

The takeaway here is that you should not buy a stock unless you understand and can articulate it’s business model. What does this business do? How does it make money? What are some of the potential threats to this business? What are the opportunities? And of course, you must be able to justify the price you pay for the stock, which is the topic of tomorrow’s tip. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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