Here are three tips for young investors from Warren Buffett of Berkshire Hathaway, arguably the most successful investor in history.

1. 3 TIPS FOR YOUNG INVESTORS
FROM WARREN BUFFETT

2. Millennials seem to distrust the stock
market more than any generation in
history.
W A R R E N B U F F E T ’ S T I P S F O R Y O U N G I N V E S T O R S

3. It makes sense that young investors would be
hesitant about investing in the stock market after
watching the financial world almost collapse around
them and watching their parents’ generation lose
homes, jobs and significant portions of their wealth.
W A R R E N B U F F E T ’ S T I P S F O R Y O U N G I N V E S T O R S

4. Indeed, young investors are incredibly
risk averse – or so they think.
W A R R E N B U F F E T ’ S T I P S F O R Y O U N G I N V E S T O R S

5. By focusing on the short
term risk of losing
money in the stock
market, millennials are
exposing themselves to
a significant long -term
risk. By avoiding growth
investments in favor of
cash savings, many
young investors are
setting themselves up
for failure.

6. An entire
generation of
Americans will
fall short of their
retirement
savings needs if
they don’t adjust
their risk
tolerance and
investment mix.

7. But it’s not too late!
Here are three tips for young investors
from Warren Buffett of Berkshire Hathaway
(NYSE: BRK.B), arguably the most successful
investor in history.
W A R R E N B U F F E T ’ S T I P S F O R Y O U N G I N V E S T O R S

8. “ BE FEARFUL WHEN OTHERS ARE GREEDY
AND GREEDY WHEN OTHERS ARE
FEARFUL.”
TIP FOR YOUNG INVESTORS NO. 1
Source: Contrarian Edge

9. Disciplined investing
often involves
suppressing basic human
nature. When the
markets are rising it
seems everyone is
making money in the
market or has a hot stock
tip to share. Buffett
argues that investors
should “be fearful when
others are greedy,”
meaning that they should
be skeptical of the frenzy
when markets shoot
higher and higher.

10. The financial crisis and stock market crash
of 2008-2009 is a great example of this
advice paying off.
TIP FOR YOUNG INVESTORS NO. 1

11. What if you had invested $1,000 at the height of
the market in October 2007 when the market was
“greedy?” Your investment would’ve fallen to
$429.25 in March 2009, the height of investors
being “fearful.”
TIP FOR YOUNG INVESTORS NO. 1

12. On the flip side, if you
had invested that
same $1,000 when
the markets hit their
March 2009 lows,
your investment
would have risen to
$2,319.47 in just three
years and would be
worth almost $ 2,950
today.
TIP FOR YOUNG INVESTORS NO. 1

13. “ THE STOCK MARKET IS A NO –CALLED -STRIKE
GAME. YOU DON’T HAVE TO SWING AT EVERYTHING –
YOU CAN WAIT FOR YOUR PITCH.”
TIP FOR YOUNG INVESTORS NO. 2
Source: Forbes

14. when investors were hitting the panic button and
selling stocks at pennies on the dollar Warren Buffett
remained cool, calm and collected. From 2008 to
2011, Warren Buffett made investments in the same
kinds of companies he already liked to own, but at
significantly lower prices.
TIP FOR YOUNG INVESTORS NO. 2
In 2008,

15. A great example of this is his $5
billion investment in Goldman
Sachs (NYSE: GS), which came
shortly after the collapse of
Lehman Brothers.
TIP FOR YOUNG INVESTORS NO. 2
Source: Dan York | Flickr

16. Buffett waited for the perfect
pitch, a major investment in a
solid company at the height of
the financial crisis.
His $5 billion investment has
already paid off handsomely,
with profits exceeding $3
billion on his $5 billion
investment.

17. TIP FOR YOUNG INVESTORS NO. 3
“SOMEONE IS SITTING IN THE SHADE NOW
BECAUSE SOMEONE PLANTED A TREE A
LONG TIME AGO.”

18. Warren Buffett is
famous for never
investing in tech
companies, despite a
close friendship with
tech -titan Bill Gates.
Buffett invests in
companies like
Coca -Cola (NYSE: KO),
ExxonMobil (NYSE:
XOM) and Wells Fargo
(NYSE: WFC).
Source: CNBC

19. He likes these stocks because they are
stable, pay high dividends and because those
dividends are rising.
TIP FOR YOUNG INVESTORS NO. 3

20. If you start young you
don’t need risky
investments in high -
flying stocks. Make
regular contributions to
an investment account in
which you own shares of
high quality, low risk
stocks. Reinvest the
dividends and let
compound interest work
its magic to grow your
portfolio the slow –and -
steady way.