Can you apply Warren Buffett’s style of stock market investment to property investing?

Warren Buffett is one of the most successful investors of all time and one of the richest men in the world with a net worth of $79 billion, most of which he intends giving away to good causes.

He leads a relatively simple life in Omaha, Nebraska and has lived in the same house since 1958.

Multi-billionaire Warren Buffett is a ‘value investor’ who invests in companies for long term though Berkshire Hathaway, which has given shareholders a remarkable average annual return 20% since 1965.

A single share in Berkshire now costs over $280,000.

He looks to buy companies at a price which gives him a ‘margin of safety’. In other words, he only buys at below-market value and pays no regard to the sticker price quoted on the stock market.

“Price is what you pay. Value is what you get.”

Warren Buffett

Can you apply this investment philosophy to property?

Of course you can!

All property investors want to buy property at below market value. However, very few take the time and trouble to keep researching the market in order to find that special deal.

“Never invest in a business you cannot understand.”

Warren Buffett

Warren always does his homework and knows his business inside out. He has spent years learning to become a great investor and studied under the likes of Ben Graham, the father of value investing who made a fortune during America’s great depression.

Finding the right property, in the right area at the right price gives an investor an excellent prospect of good long-term earnings - massive upside with very little downside.

“Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.”

Warren Buffett

“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”

This might sound strange for someone investing in a volatile ad sometimes risky stock market, but not if you apply his philosophy of buying companies with a margin of safety in the price and a strong moat.

Warren Buffett has come up with many brilliant quotes. Perhaps one of his most famous is:

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Applying Buffett’s investment philosophy in the stock market or property investment will ensure you make money and build wealth for the longer term without risking the farm on every deal.

By Charles Kelly, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

If you’d like further information on how to survive the crisis and even quit the rat race, email me at Charles@CharlesKelly.netor send me a message through Facebook or my Money Tips Daily community.

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