Investing: Only Listening to Those You Know and Trust


Only Listen To Those You Know And Trust


Warren says: "We've long felt that the only value of stock forecasters is to make fortune tellers look good."


Though the above comment may sound facetious, Warren Buffett famously and constantly emphasizes the importance of investing in management teams you trust. The billionaire himself is super careful with selecting his own business partners and managers. He is the master of his own investments, but he still believes their actions can build or destroy an investment.


Warren cautions that, as soon as a management team reveals itself to be insensitive to the owners' interests and needs, shareholders will suffer.


Of course, Warren's connections give him an inside look at who can be trusted in any industry, but we can still control our choices when it comes to selecting the people who will be managing our portfolios and assisting us in selecting our investments.


Use your common sense when making these choices, because the financial world is filled with folks seeking to make a quick buck on others' naivety and greed. Be wary of self-proclaimed "gurus" who make sensationalistic claims and promise exorbitantly high returns within a short period of time. Many of them are simply trying to earn a commission by attracting new subscribers and investors.


None of these claims will benefit individual investors, and self-dubbed "experts" are typically no better than we are at predicting the future.


Be wary of whom you trust in the stock market.