How to Make Your First Million the Warren Buffett Way
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Warren Buffett, one of the richest people on the planet, didn't get there by accident. He accrued his billions of dollars through decades of sound and disciplined investments. If you're interested in investing or are currently in the stock market, there are worse role models to have than Warren Buffett.
One huge caveat regarding these lessons drawn from Buffett's experience: Investing 90% of your money in stocks is an extremely aggressive choice. While it does give you the opportunity for aggressive growth, it also poses the risk of big losses—losses so big, in fact, that there's a good chance to lead to a panicked sale of stocks at exactly the worst time. For advice on picking the right mix of stocks and bonds for you, read "The Two Things You Must Do to Keep Your Nest Egg Safe" and "How Much Stock Is Too Much? Asset Allocation for Dummies."
Read more: Amazon's Jeff Bezos Is Officially Richer Than Warren Buffett
One strategy Warren Buffett is famous for is his refusal to be too reactive when it comes to the stock market. Buffett will hold onto stocks for as long as he can, sometimes forever. This one of the strategies that you too can employ.