The Best Investment Tips From Warren Buffet

Be Humble

To many, this advice seems unexpected when it comes from a self-made billionaire; however, as Warren Buffet shows, humility is part of the formula for success. He is known for declaring that he would rather deal with someone who has a 130 IQ and thinks it's 125 than a person with a 180 IQ who thinks it's 200. The person with an inflated sense of their abilities can do enormous damage.

In investing, Buffet considers humility important when it comes to selecting stocks and other investment vehicles. Being humble means accepting that you don't know everything. No person can, and even Warren Buffet is no exception. Buffet has enjoyed long-term success because he limits his investments to what he understands. It's always better to realize when something is beyond your capabilities than to rush into something and get in over your head. This is true in life generally and particularly in investing.