Money Talks Warren Buffett's rules Filipinos ignore

Warren Buffett's Rules Filipino Investors Ignore

As Filipino investors, we often look to Warren Buffett for guidance on how to make smart investment decisions. While he may not have specifically spoken about the Philippines, his timeless principles can still be applied to our local market. In this article, we'll explore five key insights that many Filipino investors tend to ignore.

Key Insight #1 Timing is Not Everything

Don't waste your time trying to predict short-term market fluctuations or relying on others who claim they can. Even the most seasoned professionals get it wrong, and you may end up losing more than you gain in the long run. Instead, focus on developing a solid investment strategy that aligns with your financial goals.

Key Insight #2 Trading Too Frequently is a Mistake

Excessive trading is not investing; it's speculating. Invest in quality companies and let them grow over time – avoid frequent buying and selling. This approach may seem counterintuitive, but it can lead to long-term success by minimizing transaction costs and emotional decision-making.

Key Insight #3 Paying Too Much in Fees Can Eat into Your Returns

High management fees can eat into your returns, especially if you have low-cost alternatives. In the Philippines, consider index mutual funds or unit investment trusts (UITFs) that track the Philippine Stock Exchange Index to minimize fees and maximize your returns.

Key Insight #4 Consistency is Key to Long-term Success

Avoid being swayed by short-term market noise and stick to a consistent investment plan. Regularly add money to your investments, regardless of market conditions – this is called peso-cost averaging. By doing so, you'll smooth out market volatility and ensure that your long-term goals remain on track.

Key Insight #5 Discipline Trumps Excitement

Building wealth takes discipline, patience, and sticking to principles that have worked for decades. Avoid getting caught up in the excitement of quick wins and focus on the long-term benefits of consistent investing. Remember, Warren Buffett's investment philosophy is built on a foundation of time-tested wisdom, not get-rich-quick schemes.

By ignoring these common pitfalls and embracing these five key insights from Warren Buffett, Filipino investors can set themselves up for long-term success in the Philippine market.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.