Warren Buffett did not invest in NVDA, AMZN, TSLA, MSFT, GOOG, META, and he only invested in AAPL in 2016, 36 years after it had already increased by 9,400% since its listing.
However, Buffett has earned over $183 billion from investing in stocks (with no one even coming close). He is currently the 6th richest person in the world. If you add the $50 billion he has donated to charity, he would be the 3rd richest person in the world.
Lessons?
- Never Fear Missing Out (FOMO) on a Stock: You can miss some of the most attractive stocks in the world, but you can still make very good profits with other stocks.
- Only Invest in What You Understand and Meet Your Investment Criteria: Buffett stays away from MSFT due to his close relationship with Bill Gates. He avoids TSLA because it is too unpredictable. He steers clear of NVDA because he doesn’t fully understand the technology. So, you don’t need to win every game. You just need to win in the games you feel comfortable playing.
- You Don’t Need to Buy Stocks Early to Make Huge Profits: Sometimes, buying a stock 10-20 years after its IPO is much safer when it has proven itself as a stable wealth-generating tool, rather than trying to bet on new, unproven stocks.
