Warren Buffet has made and continues to make a lot of money, which is a really good reason to pay attention to what he does. Recently his company Berkshire Hathaway Inc. had their annual meeting and many people went to hear Mr. Buffet’s comments. There are were 3 take aways which are easy to say and harder to implement.

Lesson One – do not chase beating the index.

Lesson Two – be patient with your investments

Lesson Three – do not lose your money.

Lesson One  – the stock index will rise and fall, if your investments are providing steady dividend payments, some years you will outperform, some years you will be around the index.

Lesson two – this is the hardest lesson which is wait for when you feel is the best opportunity. Mr. Buffet has a great many ideas being given to him and his team on a daily basis. The trick is to not do anything with most of them, let time help you or patience be your guide. Mr. Buffet has often waited years before making a big decision. Also you may have noticed when companies have gone to Mr. Buffett for help, his rates are higher than the banks and ensure a constant dividend flow.

Lesson Three – the most important aspect of investing is not to lose your money. If you start with companies that have paid dividends for 5 to 10 years, your total return will be in the positive. By narrowing down the field for the bulk of your investments, and then meeting the other criteria you have is the safest method not to lose money.

By using the three lessons for investing in stocks – pick solid companies earning a profit and paying dividends, use patience and because you picked good companies their value will tend not to go down. In the long run you will be better off.

There are more questions than answers, till the next time – to raising questions