I read this article and feel that these points are important to share. These are points that I agree with and try to get my client to follow. Mr. Buffett shares 3 specifics to avoid so you have a good retirement.
1. Speculating instead of investing
Some investors fail to recognize the difference between a speculative asset and an investment-worthy asset. According to Buffett, the difference is in how the asset generates a return.
“All investment is, is laying out some money now to get more money back in the future,” Buffett once explained. “Now, there’s two ways of looking at getting the money back. One is from what the asset itself will produce. That’s investment. [The other] is from what somebody else will pay you for it later on, irrespective of what the asset produces. And I call that speculation.”
2. Trying to time the market
Market timing is deceptively tempting. Investors often convince themselves they can wait for the right time to buy or sell a stock. However, experienced investors understand that market cycles are unpredictable, so staying invested for longer is typically the best approach.
3. Overpaying
During market bubbles and speculative manias, investors run the risk of overpaying for assets. This can be detrimental for returns.

“No matter how wonderful a business it is, there always is a risk that you will pay a price [and] that it will take a few years for the business to catch up with the stock,”

Moneywise interview 9/10/24

Disclosures:http://www.hechteffect.net/?page_id=31