Here’s Warren Buffett’s piece of wisdom for investors aiming to get rich

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September 2, 2019 4:25 PM

Veteran investor Warren Buffett has a piece of advice for all the investors dreaming to get rich -- never make a decision based on what other people think.

Warren Buffett, market news, stock market, GDP, GDP ratio, FAANG stock, US stockThe investors should not make big predictions on the direction of the economy and even the stock markets, Warren Buffett said.

Veteran investor Warren Buffett has a piece of advice for all the investors dreaming to get rich — never make a decision based on what other people think. Even though the advice by the ‘Oracle of Omaha’, as he is popularly known as in the investing world, is decades old, it still holds true. “That’s a lot of people selling, a lot of people buying. If you talk to one person, you’d hear one thing … you really should not make decisions in securities based on what other people think,” CNBC TV18 reported his as saying in 1994 Berkshire Hathaway annual meeting. “A public opinion poll will just — it will not get you rich on Wall Street,” Warren Buffett also said.

The investors should not make big predictions on the direction of the economy and even the stock markets, he added. Even the forecast by others on macroeconomic matters should not impact the individual stock moves, he also said at the same meeting. Buffett and his longtime business partner Charlie Munger said they especially try to not make big predictions on the direction of the overall economy and stock market nor let the forecasts from others on those macroeconomic matters influence their individual stock decisions.

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Meanwhile, Warren Buffett had said in May this year that Berkshire Hathaway will not spend ‘another dime’ on share repurchases, unless it benefits the shareholders. Warren Buffett said that he has “no ambition to spend a dime” on more buybacks, however, if the shares trade at what he reckons to be a discount to the broader market, Berkshire Hathaway could “easily spend very substantial sums” on more repurchases.

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