Who do you ask for property investment advice?
With so many mixed messages and vested interests, who can you really trust?
And in today's property markets, there are very few advisers who have the perspective of having lived through and successfully invested in several property cycles and understand how to take advantage of the current stage of the property cycle.
Yet there is a new breed of so-called property experts emerging.
So, what’s the threshold for being able to call yourself an expert?
Usually, experts have years of experience in their chosen profession.
They’re at the top of their industry, and they shape the path of progress.
And yet, there’s no shortage of so-called “property experts” and buyers’ agents whose only real experience seems to me they've done a short course and really love property.
The rise of these so-called “advisors” coincided with the practice of personal branding on social media.
While social media has undoubtedly created fantastic opportunities for real experts to connect and share their knowledge, it has also opened the floodgates for a tsunami of self-titled “property experts” looking to flog their books, consulting sessions, training programs, or online courses.
So, in today’s show, Mark Creedon and I are going to share some advice from Warren Buffett.
As I said, don’t take advice from somebody you wouldn’t trade shoes with, and I bet you’d love to be in his position.
There seem to be so many mixed opinions on what’s ahead for our economy, inflation, interest rates, and how this is going to affect our property markets and how businesses.
Clearly, there is no shortage of people with opinions on what we should be doing with our lives, be it in savings, spending, or investing.
However, over the years, I’ve learned a lesson that I return to and that I recommend you bear in mind.
“Don’t take advice from someone you wouldn’t trade shoes with.”
Who is someone we can all probably agree is the person we might all consider taking advice from?
How about the most successful investor of all time, multi-billionaire Warren Buffett?
Since it is unlikely you’ll have the opportunity of sitting at the dinner table with Mr. Buffett anytime soon, I’ve compiled a list of some of his classic pieces of advice.
Take them or leave them as you wish.
These are in no particular order, but some of my favourite tips from Mr Warren Buffett himself!
- “Be fearful when others are greedy and be greedy when others are fearful.”
(One of his most famous quotes.)
- “A public opinion poll is no substitution for thought.”
(Don’t just listen to everyone’s ranting about stuff and take it as gospel.)
- “Think in terms of income, not appreciation.”
(In property investment, cash flow is critical – it keeps you in the game. But it’s capital growth that gets you out of the rat race.)
- “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.”
- “Use partnerships to fill gaps in your expertise.”
(Be willing to admit your weaknesses and be willing to bring in team members to fill those. If you’re the smartest person in your team, you’re in trouble.)
- “Minimize your mistakes and learn from those you make.”
(Literally the key to successful investing.)
- “I really like my life. I’ve arranged my life so that I can do what I want.”
(Now, that’s the difference between just having a job and having choices in life because of the passive income from your investments.)
- “When you plan to buy, plan to hold.”
(Buffett is huge on the idea of holding rather than short-term speculation. He admits he can't predict how the markets will move in the short term, and he is certain no one else can either. So instead, he takes a long-term view of the market, saying if you don't feel comfortable owning a stock for 10 years, you shouldn't own it for 10 minutes. Similarly, those who have created wealth out of property took a long-term view.)
- “We attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
(The crowd is usually wrong.)
- “The trick is, when there is nothing to do - do nothing.”
(I’ve made more by saying no to things than yes to perceived opportunities.)
- “The macro view is more important than the micro view.”
(Look at the big picture.)
- “Risk comes from not knowing what you’re doing.”
(Become financially fluent.)
- “Embrace the boring.”
(Sometimes, the boring long-term plays are the most successful. Make your investment boring so the rest of your life can be exciting.)
- “Wealth is the transfer of money from the impatient to the patient.”
(Understand the importance of delayed gratification.)
- "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
(Buffett is a value investor. And it’s the same with property. You make your money when you buy your property, but not by buying a bargain. You lock in your profits by buying the “right property” – one that will outperform the averages in the long term because of its location, its scarcity, or the potential to add value.)
- “I am a better investor because I am a businessman, and a better businessman because I am an investor.” (The lesson: strategic property investors treat their investments like a business.)
These are only a few of the thoughts from probably the most quoted investor.
I could easily have made the list twice as long but use these as motivation to think differently.
Links and Resources:
Why not join Metropole’s Business Accelerator Mastermind
Learn more about Mark Creedon – Business Coach to some of Australia’s leading entrepreneurs
Get a copy of Mark’s new book here – Have a Business not a Job
Get a bundle of eBooks and reports – www.PodcastBonus.com.au
Some of our favourite quotes from the show:
“Don’t take advice from somebody who you wouldn’t trade shoes with.” – Michael Yardney
“Don’t listen to everyone’s ranting about stuff. Especially don’t take it for gospel.” – Michael Yardney
“If you don’t have a plan, you’re not going to get there.” – Mark Creedon
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