If you wanted to create the next earth-shattering consumer product, Steve Jobs would be an ideal role model to follow. If you planned to become a great golfer, you might look to Arnold Palmer or Jack Nicklaus.
So, if your goals are to outperform other investors andachieveyour life‘s financialgoals, what should you do?
Think, act, andinvestlikethe best investor out there:WarrenBuffett. While you can’t invest exactly like he does, Think, Act, andInvestLikeWarrenBuffett provides a solid, sensible investing approach based on Buffett‘s advice regarding investment strategies.
When it comes toinvesting, Director of Research for the BAM Alliance and CBS News blogger Larry Swedroe has pretty much seen it all–and he’s come tothe conclusion that simple is better, that adopting basic investing principles always increases an investor’s chance of success, and that Buffett is an excellent model for such investing.
In Think, Act, andInvestLikeWarrenBuffett, Swedroe provides the foundational knowledge you need to:
1. Develop a financial plan tohelpyou make rational decisions on a consistent basis
2. Determine the level of risk that’s right for you, and allocate your assets accordingly
3. Build a low-cost, tax-efficient, globally diversified portfolio
4. Manage your portfolio by rebalancing periodically to maintain proper risk levels
The beauty of theBuffett approach is its profound simplicity: follow the basics, keep your cool, and have a sense of humor and humility.
The market volatility of recent years has ushered in armies of economists, forecasters, and other so-called experts whose job it is to explain how everything works. Somehow, they have managed to muddy the waters even more.
The truth is, investing is easier than youthink–even in today’s economy. “Complex problems can have simple solutions,” Swedroe writes. Think, Act, andInvestLikeWarrenBuffetthelps you go back tothe basics–so you can leap in front of theinvesting pack.