Stock market

Without saving, I’d listen to Warren Buffett for long-term wealth.

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When it comes to investing to build wealth over time, Warren Buffett knows what he’s doing. gave Berkshire Hathaway The CEO has a net worth of more than $130bn (£105bn).

In my view, many investors would do well to listen to the advice of the ‘Oracle of Omaha’. And having no savings shouldn’t be a barrier to getting started.

Don’t overcomplicate things.

One of the most important pieces of advice is to avoid overcomplicating things when they need to be. As Buffett said “I don’t tend to jump more than 7-foot bars. I look for 1-foot bars that I can step on.”

There are literally thousands of stocks available to buy from companies in all different sectors and geographies. It is almost impossible to compare them all intelligently.

Fortunately, investing well doesn’t have to involve comparisons. Helium One with Visa. In fact, according to Buffett, the key is to carefully avoid comparisons that are too difficult.

Instead, the Berkshire boss prefers to narrow his focus to companies he can intelligently evaluate. And if nothing presents itself as an opportunity, he’s willing to wait until it does.

Don’t waste money.

Different investors have different abilities. Someone with an engineering background might be in a good place to make an estimate. Rolls Roycewhile a PhD biologist might have a better view on it. GSK.

The reason for sticking to what can be intelligently evaluated is that it minimizes the risk of loss. And the first rule – according to Buffett – is to avoid losing money.

In the short term, stock market volatility can result in an investment being worth less than what it was purchased for and there’s not much anyone can do about it. But that’s not what Buffett means.

The type of losses he wants to avoid are permanent losses due to underlying business problems. And the risk of this happening is greater with a business that is difficult to understand.

UK stocks to consider buying

With all this in mind, a stock that stands out to me. JD Witherspoon (LSE:JDW). gave FTSE 250 Pub Chain is as straightforward as it comes in terms of investment proposition.

Being based in the UK means there is a significant risk of increased taxes – particularly on alcohol. And while it’s a risk that can’t be completely ignored, the company has a lot going for it.

Wetherspoon’s low prices for consumers provide a clear point of difference. And its ability to charge low prices is a result of its policy of outright owning rather than leasing its pubs.

This type of business is – in my view – relatively uncomplicated. It has a model that is proving resilient even in economic downturns and I think is likely to do so in the future.

getting started

Buying shares in Wetherspoon – or any other UK stock – doesn’t require huge savings. In fact, even if I had no savings, I would want to start investing as soon as possible.

It is very important to build an emergency fund to avoid selling shares at the wrong time. But doing it with careful investing in stocks I can understand seems to be the way to go.


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