- Warren Buffett’s insights into cash, inflation, and compound interest are among his most important pieces of advice for investors, according to a new study.
- Dr. Christian Koch analyzed the billionaire investor and Berkshire Hathaway CEO’s comments about investing during 11 of his shareholder meetings to identify eight critical, recurring themes.
- Scroll down for some of Buffett’s most crucial thoughts on investing.
- Visit Business Insider’s homepage for more stories.
Warren Buffett’s key lessons for investors include keeping cash on hand, treating shares as pieces of a business, and reining in emotions, according to a recent academic study.
The billionaire investor and Berkshire Hathaway CEO has publicly discussed numerous investing concepts over the years. Dr. Christian Koch identified eight critical ones in “Warren Buffett: A Practical Understanding of Financial Literacy Extended to Managing Investments,” an analysis he conducted for a doctoral dissertation project at University of South Florida, Tampa.
Koch, the CEO of investment-manager KAM South, parsed Buffett’s comments during 11 of his shareholder meetings between 1999 and 2019 and identified the key recurring themes.
Here are eight of Buffett’s most important tips for investors, based on Koch’s findings:
1. Hold cash to capitalize when opportunities arise.
“If there’s nothing smart to do, cash is the default option,” Buffett said in 2003.
2. Take advantage of