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, he has immortalized his investment acumen through shareholder letters, countless TV interviews, and several books written about him and his investing principles. 

Today, I’m giving you lesson #2 from Warren Buffett - Don’t Overpay.

On Tuesday of this week, I talked about understanding what you’re going to own before you make a decision to buy. But once you understand what you own, you can’t just buy it at any price. We should only buy an investment if it’s trading at a good price. 

I wrote this week’s talking points while on a flight to Denver. I paid only $80 for my one-way ticket to Denver, and was quite pleased with the deal I got. The problem was, I missed my flight. By an entire day! While this situation was stressful, and very out-of-character for me, I went ahead and twisted the knife in the wound by shelling out over $330 for a last minute ticket to Denver. 

Now thankfully, I still arrived at my destination on time and with no harm done, other than that done to my wallet. 

But think about the difference in ticket price. An airline ticket to the same place, but under different circumstances, that ticket cost as little as $80 or as much as $330. 

The same is true for stocks. You want to buy at $80 a share, not a $330. So another aspect of doing your homework is finding out what the company is actually worth. You can do this through research, or pick a money manager that has a good track record of finding and snapping up bargains in stocks. Ideally, you would only invest in companies that are trading for less than their actual worth. 

That’s a big reason why Buffett has been so successful...he has an amazing knack for bargain hunting. And while bargain-hunting takes know-how and skill, the takeaway here is to be cautious about how much you pay for any investment. And whatever you do, don’t overpay because you want to get in on the hot stock of 2019 after it’s already up 1000% for the year. 

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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