1 piece of Warren Buffett investing advice I’m following in 2022

Warren Buffett has shared a whole lot of investing wisdom over the years, some of which is motivating Manika Premsingh to make better financial decisions. 

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Warren Buffett at a Berkshire Hathaway AGM

Image source: The Motley Fool

No one offers sage wisdom like Warren Buffett now, do they? The Oracle of Omaha has not just been a hugely successful investor but has also shared great insights on money over the years. Like this one: “If you don’t find a way to make money while you sleep, you will work until you die.” It hits home for me particularly when I think in terms of retirement planning. If I do not plan for it, I would have to work far longer than I wish to in order to keep my income going. 

Making money through stock market investments

Keeping this in mind, I am now finding ways to make money while I sleep, to say it in Buffett’s words. Investing is one of the key ways of doing so. Whether it is investing in real estate or bonds or stocks, my goal is to make money from money. For me, stock-market investing has long been a profitable way of investing. So I am sticking with it. 

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Growth stocks to grow my capital

There are essentially two ways of making money through investing in the stock markets. One of them is through growth in my capital. I have to choose stocks carefully, though. There are plenty of stocks that have languished for years and could do so in the future as well.

So, I like to buy FTSE 100 and FTSE 250 stocks. Many of them have given solid returns over the years and could continue to do so in the future as well. I have made an odd investment or two in speculative stocks, but typically these are small investments. And I am certainly not depending on them to provide security of any kind now or in the future. I am, however, looking forward to growing my capital through the other stocks I hold, which have been far more predictable in the past. 

Passive income is another option

Many of these FTSE 100 and FTSE 250 stocks also double up as lucrative passive income stocks. This means I get an opportunity not just to grow my capital but also dividends from them. If I can plough back these dividends back into my investments, it is even better. It makes for a virtuous cycle. I first invest my initial capital, which earns me a return, and it then gets reinvested to potentially earn me even bigger returns. 

Parting Warren Buffett quote

Needless to say, there is always a risk that my investments could occasionally look like bad decisions. Like, for instance, during the stock market crash of 2020. For some time, the value of my investments was much lower than my initial invested capital. But such phases typically do not last, as we have seen. So, if anything, these are often times to make more investments, not shy away from them. To end with another of Warren Buffett’s quotes “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”. 

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies still trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Saucepan on a gas hob
Investing Articles

The Centrica share price is up 65%. Here’s why I sold

The Centrica share price has soared nearly two-thirds in a year. So why has our writer dumped his shareholding?

Read more »

Modern suburban family houses with car on driveway
Investing Articles

As the Howden Joinery share price falls, I’d buy and hold

The Howden Joinery share price has been falling. But Christopher Ruane likes its business model and is weighing adding it…

Read more »

Hand holding pound notes
Investing Articles

The tumbling Persimmon share price means an 11.3% yield! Should I buy?

A falling Persimmon share price has pushed the dividend yield into double-digits. Our writer considers his next move.

Read more »

Innovation and new ideas lightbulb concept 2022
Investing Articles

As stock markets crash, I’d buy these 4 FTSE 100 fallers!

After US stock markets tumbled on Wednesday, the FTSE 100 duly followed suit on Thursday. But falling share prices revealed…

Read more »

Compass pointing towards 'best price'
Investing Articles

A 7.6% dividend yield! Is the Aviva share price a bargain not to be missed?

The Aviva share price has recovered well since the 2020 stock market crash. As one of the top FTSE 100…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Stock market crash: I’m hunting giants for future gains!

In this latest stock market crash, selling pressure is slamming share prices. But some great company stocks are being crushed,…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

With a P/E of just 8, this social media newcomer is a cheap stock pick!

This social media firm looks like a cheap stock pick for my portfolio. For a growing tech firm, it certainly…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

Warren Buffett has been selling dividend stocks. Should I be doing the same?

As Warren Buffett sells out of Abbvie, Bristol-Myers Squibb, and Verizon, our writer wonders whether he ought to be looking…

Read more »