When investing, having technical expertise would certainly help – but it’s not the most important thing, according to investment guru and Berkshire Hathaway chief executive Warren Buffett.
The most important attribute is a good attitude, Buffett told Yahoo Finance in an interview with editor-in-chief, Andy Serwer.
“The proper attitude toward investing is much more important than any technical skills,” he said.
And by ‘proper attitude’, he means purchasing stocks with a view to own part of a business, not to get rich quick.
“You have to understand that you’re buying part of a business, and not that you’re buying something that wiggles around on a chart or has resistance or a 200-day moving average, or that you buy puts or calls on,” he said.
“You’re buying part of a business. And, if you buy intelligently into a business, you’re going to make money.”
You need to be in it for the long-haul too, Buffett said.
“You have to buy something that, in my view, you’re not going to get a quote on for five years,” he said.
“[You need to think] That they’re going to close the stock market tomorrow for five years and that you’ll be happy owning it as a business.
“If you owned Coca-Cola..You probably would have been better off if there wasn’t any market in it for 30 or 40 years, because then you wouldn’t have gotten tempted to sell it, and you’d just watch the business, and you’d watch it grow and feel happy.”
However, having an understanding of basic accounting practices is a necessity too, the CEO said.
“You have to understand accounting. That’s gotta be like a language to you. You have to know what you’re reading,” he said.
“Some people have more aptitude for that than others, and that’s something I learned myself.”
Buffett, who is worth a whopping US$73.8 billion and is the world’s fourth-richest man, purchased his first stock at the age of 11, and filed his first taxes at the age of 13.
Now, Berkshire Hathaway owns more than 60 companies, and Buffett is considered one of the most successful investors of all time.