Warren Buffett: 9 Rules For Dividend Investing Success

Рет қаралды 14,189

Күн бұрын

In this video I reveal the 9 Warren Buffett rules I follow to achieve dividend investing success. Warren Buffett is the greatest investor of all time. He is the Chairman and CEO of Berkshire Hathaway Inc an American multinational holding company which over many decades has consistently outperformed the S&P 500 index. Buffet was born in Omaha, Nebraska USA and has a net worth of over 100 Billion Dollars making him one of the richest people on the planet.
I have been investing in large cap companies for over a decade. I like to invest in companies with strong balance sheets and who have large economic moats. These companies tend to pay reliable streams of passive income through their dividends which I reinvest and allow them to compound over time.
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Disclaimer
The information presented on this channel and in these videos is for entertainment purposes only and is not financial advice. The price of shares can go down and well as up. Investing in shares is not appropriate for everyone so please do your own research.

Пікірлер: 111

@clarknova5331 Жыл бұрын

My favourite from Buffet : "The stock market is a device for transferring money from the impatient to the patient"

@TheCompoundingInvestor Жыл бұрын

Yep that is a great one and looking back I should have included it. Its a brilliant quote!

@BadWeatherfreak Жыл бұрын

Well he made it to 90s. How many people can?...

@space_star_one Жыл бұрын

@@TheCompoundingInvestorhow much money did you start with in year 1 ?

@TheCompoundingInvestor Жыл бұрын

Started off with a lump sum of £5000 which I spread across 3 banks Barclays, RBS and Lloyds. My aim was then to put between £500 and £1000 a month in but it varied quite a bit. I think my average is around £1300 a month over the entire time. I only started this portfolio when the mortgage was paid off. this meant I had more funds to put in each month.

@space_star_one Жыл бұрын

@@TheCompoundingInvestor thanks you so much, i am 30 , broke at the moment, ect back to living with parents... it gives goals and clear path to aspire to

@chazzdposh Жыл бұрын

Another smashing video!! People may say “why do you keep saying the same things over and over again” but reinforcing the ideas like patience and time in the market, not timing the market are so important for achieving the right mentality.

@TheCompoundingInvestor Жыл бұрын

Thanks chazzdposh. I agree there is a big psychological aspect to investing which is often overlooked.

@carlmay8314 9 ай бұрын

I am a dividend and growth investor and have enjoyed your videos however there are long periods when the stockmarket has gone nowhere. Example 1929 DJIA 381 took until 1954 to get back to 381. That's 25 years and a lot of patience.

@winstonsmith3690 Жыл бұрын

I'm just starting out and I'm like a sponge! Thanks for the wisdom.

@TheCompoundingInvestor Жыл бұрын

You are welcome Winston. All the best on your journey

@mattsennett Жыл бұрын

WB made most of his money after turning 50 so it shows the longer you play this game the bigger the rewards will be. Another great video and I can't wait for the next one 👍🏻

@TheCompoundingInvestor Жыл бұрын

Thanks Matt and all the best 👍🏼

@derekdrew7922 Жыл бұрын

Thanks for identifying 9 great Buffett investment rules. Interestingly my favourite Buffett quote is "Rule No. 1 is never lose money. Rule No. 2 is never forget Rule No. 1". Although in reality this is impossible to achieve, this quote reminds me to carefully think through any investment decision I make and never buy on a whim.

@TheCompoundingInvestor Жыл бұрын

Thanks Derek. interesting times ahead for sure. As they say the market always climbs a wall of worry.

@alastairdickson5131 Жыл бұрын

Great video I’ve just moved £5000 into my Freetrade isa waiting on some bargains tho tempted for an S&P 500.

@scentsoftravelmeditation Жыл бұрын

This was one of the best dividend videos I watched Thanks :)

@TheCompoundingInvestor Жыл бұрын

Your are welcome

@Dr.JubairsFinance Жыл бұрын

Professor Dividends, your videos give me so much motivation

@TheCompoundingInvestor Жыл бұрын

Thanks Jubair

@beancount811 Жыл бұрын

You're my hero.👍

@MrButuz Жыл бұрын

I had my first dividend this month - £1.65. That allows me to purchase the ingredients to make a few coffees! :D onwards and upwards!!

@TheCompoundingInvestor Жыл бұрын

That's the spirit MrButuz! all the best mate.

@mornejordaan1832 Жыл бұрын

Thank you , I agree learn from your lesson and build your self slowly.

@s2kluke Жыл бұрын

I wish you could do more videos, I find them so Informative and interesting. Thank you

@TheCompoundingInvestor Жыл бұрын

Thanks for your kind comment. I’m glad you enjoy them.

@oladimejiakintaro221 Жыл бұрын

I'm always looking forward to your videos.

@TheCompoundingInvestor Жыл бұрын

Thanks so much my friend

@carlenecayhill Жыл бұрын

This is a great video! Really encouraging to see how you've implemented some of Buffett's principles in your own investing journey!

@TheCompoundingInvestor Жыл бұрын

Thanks Carlene. I really appreciate it. All the best with your channel!

@garphill2162 Жыл бұрын

Just to note Warren Buffet started young but his mentor Bern Graham had some input. These days Warren has not really said much about his Mentor and how he would view the market today. Peter Lynch is also another great Investor. These 3 people have constantly beaten the Market. All 3 have one thing in common research to which the bedrock of their success. The market changes over the decades but remains the same. Emotion has made people poor and patience has made them Rich. These 2 words are key to investing Research and Patience.

@crokkoadventures Жыл бұрын

Like before watch Bang

@TheCompoundingInvestor Жыл бұрын

Thanks my friend

@Cherpontcarp Жыл бұрын

Superb content as always 👏

@TheCompoundingInvestor Жыл бұрын

Thanks so much, I really appreciate it

@jeromegudgeon Жыл бұрын

Great video. The irony of Buffet is that he doesn't pay a dividend from Berkshire (which I hold).

@TheCompoundingInvestor Жыл бұрын

I guess he believes he can do better things with the dividends from the companies he owns than the shareholders could if he passed them on.

@gurdeepchumber2764 Жыл бұрын

Great video mate as always keep up the good motivational work 👍🏾

@TheCompoundingInvestor Жыл бұрын

Thanks as always, Gurdeep. All the best

@malcolmbirkett1347 Жыл бұрын

Nice work. 😊

@TheCompoundingInvestor Жыл бұрын

Thanks Malcolm

@wrightben84 Жыл бұрын

I have just started out. Seems like a good time to start as the ETFs went down so much in 2022. Keep up the content as I saw you had ishares over vanguard and it's fees are so much lower but still has the same returns 🎉

@TheCompoundingInvestor Жыл бұрын

Thanks Ben and good luck on your investing journey.

@mrwood4557 4 ай бұрын

I just started out, after watching his amazing videos. Encouraged me to buy ETFs ishares with Barclays. Still in collage, never to early to start a pension.

@TheCompoundingInvestor 4 ай бұрын

@mrwood4557 thanks so much. All the best on your journey

@stephenlogan1248 Жыл бұрын

brilliant video. Thanks

@TheCompoundingInvestor Жыл бұрын

Thanks Stephen

@SirBoberus Жыл бұрын

Very informative video here! Thank you as always for sharing your journey. Looking forwards to my first dividends next month!

@TheCompoundingInvestor Жыл бұрын

Thanks so much SirBoberus. All the best.

@drilllord6207 Жыл бұрын

Brilliant video. I bet you gained a few grey hairs during that 60k portfolio drop! Like you say, that was the opportunity!

@TheCompoundingInvestor Жыл бұрын

Thanks. Quite scary times as it was around the start of lockdown with so many other issues to worry about as well and a lot of uncertainty

@slackjack23 Жыл бұрын

This is great, will you also be doing best stocks to buy in 2023? I'm currently following your 2022 but wondered if it's still relevant, as I see you've some stocks like BATS, RR and Croda.

@TheCompoundingInvestor Жыл бұрын

Thanks Jack. I’ve got a selecting stocks video in the pipeline

@mpersard Жыл бұрын

Very interesting video with some great pearls of wisdom. 👏👏I have read his book (The Snowball) which I can recommend if you have not read it yet 👌

@TheCompoundingInvestor Жыл бұрын

Thanks Mr P. I’m about half way through that book. Quite a big one.

@knowledgeseeker5499 Жыл бұрын

Brilliant video and advice ❤️👌

@TheCompoundingInvestor Жыл бұрын

Thank you

@joeyd1682 Жыл бұрын

Great video as usual, many out out there to watch but I really look forward to Seeing yours when they get up loaded. Question how do you track your investments and could you do a video on it in the future :)

@TheCompoundingInvestor Жыл бұрын

Thanks Joey. I have to say I just use an excel spreadsheet and record money going into the platform and the date. I also record all the dividends and the dates and thats about it. I also have the amazing yahoo finance app on my phone and program in all the shares I have and the number of shares. I can then see my portfolio total and what is up and down each day at a glance. Great app and also free.

@joeyd1682 Жыл бұрын

@The Compounding Investor will look into it. Thank you for your reply also thanks for keeping me interested

@matteden7535 Жыл бұрын

Enjoyable video... I do have a lot of time for WB and CM both have a lot of investment wisdom... wish you all the best on your way to reaching 400K

@TheCompoundingInvestor Жыл бұрын

Thanks Matt and all the best with your investments.

@keefo8957 Жыл бұрын

Great video again Mr CI. I’m looking forward to comparing my YTD dividend yield against yours at the end of May to see if I am in the right track.

@TheCompoundingInvestor Жыл бұрын

Thanks Keefo. Let me know how you get on.

@desperatelyseekingfi Жыл бұрын

Another great and inspirational video. Looking forward to the next one

@TheCompoundingInvestor Жыл бұрын

Thanks my friend. All the best with your investments and your finance channel

@desperatelyseekingfi Жыл бұрын

@@TheCompoundingInvestor They are both very much like a marathon. Slowly but surely increasing

@theboywaal Жыл бұрын

How do you feel about investing in investment trusts like BlackRock energy and materials income trust or their mining trust ? It seems a good way to diversify when wanting to invest in a specific sector but I don’t understand the difference between something like that and an ETF?

@TheCompoundingInvestor Жыл бұрын

Not too sure to be honest as I've never looked into it. Nothing wrong with diversification however.

@sbwildlifeandnature6637 Жыл бұрын

🎉🥇

@TheCompoundingInvestor Жыл бұрын

Thanks

@Pcr06 Жыл бұрын

At what portfolio size would you stop reinvesting and start using dividend income for living costs? Are you planning to retire early using dividend income?

@TheCompoundingInvestor Жыл бұрын

Thanks for watching and your questions. No real plans at the moment. Enjoying the day job but passive income does give you options if things ever change.

@barrywhite5899 Жыл бұрын

Morning!

@TheCompoundingInvestor Жыл бұрын

Good morning Barry

@wonderingthoughts926 Жыл бұрын

I’ve recently discovered your videos and I think they’re great, top respect to you. I have a question for you that I hope your response will help me.. I’m at the early yet momentum building phase in my investing journey, I’m a few years in and have made good progress with a few accumulating index funds. Something I’m struggling with now is the niggling overthinking my strategy. My long term goal is to retire in my early 50’s by taking yearly small withdrawals from my portfolio, I am focused on this so much that my fear of making a small mistake today could compound over time and ruin my goals! So my question is, did you go through this same mental process?

@TheCompoundingInvestor Жыл бұрын

Absolutely the same. Took a while to decide which type of investing style suited me. My initial plan was to invest in cheap shares after the financial crisis but I soon realised they were loaded with debt and not good investments. I should have bought the strongest in each sector not the cheapest. Nowadays I try to make things simple but investing in large cap dividend stocks which are virtual monopolies as well as a few index tracking ETFs.

@rogermoore7405 Жыл бұрын

Great video as always. Even repeat stuff cements views from old content I forgot. I see you spent a lot on the ticker IUSA how is this different from VUSA? I only have Vanguard and hear it is a gripe that you must manually reinvest does IUSA auto reinvest? What platform should I use? Thanks.

@TheCompoundingInvestor Жыл бұрын

Basically the same thing but offered by different companies. Same fees I think. The reason I use ishares is because on my Barclays platform it seemed the be the most popular S&P500 ETF with them.

@rogermoore7405 Жыл бұрын

Perfect. Thanks for the reply it is appreciated.

@gianlucapagnoni283 Жыл бұрын

Thanks for sharing your wisdom! I always share your videos with my colleagues hoping to build a community of investors but they have losers mentality and prefer to play videogames or get stoned... one day I will have my compounded "revenge" 🤑🤑🤑

@TheCompoundingInvestor Жыл бұрын

Thanks Shawn. This reminds me of the famous marshmallow experiment which I'm sure you would pass with flying colours my friend.

@michaelhutchinson2854 Жыл бұрын

Great video! Would you ever consider QYLD? As I’ve seen you watch Dividend bull and he’s a fan of it.

@TheCompoundingInvestor Жыл бұрын

I've not looked into that one. I'll check it out.

@myafrosheen Жыл бұрын

It's not accessible for EU investors due to there being no K.I.D

@michaelhutchinson2854 Жыл бұрын

@@myafrosheen well considering I’ve got 200 shares in trading 212 I think your wrong 🤣

@myafrosheen Жыл бұрын

@@michaelhutchinson2854 probably within a CFD account or within a non-UK account. You can't get it within a UK ISA

@michaelhutchinson2854 Жыл бұрын

@@myafrosheen dude look it up seriously. I’m telling you I have it in my ISA

@calarthur Жыл бұрын

I really enjoy your videos but it seems like you're contracting yourself at 1:48 and 1:58. You talk about not timing the market then proceed to talk about holding money back and therefore timing the market?!

@TheCompoundingInvestor Жыл бұрын

Thanks Calum. I invest regularly and hold for the long term. I very rarely sell. When the market is low however I just put in a little more than I would normally do and when it seems to be smashing records I hold back a little. These are just minor adjustments as opposed to trading.

@beancount811 Жыл бұрын

@@TheCompoundingInvestor I like how Howard Marks approaches this question: timing the market is hard since you're faced with unknowable future events affected by both human choice and psychology; but, the markets are cyclical in the short and the long term, hence it should be possible to gauge where we stand in the present and tilt. And so we aim not to overpay during the boom and plant our trees during crashes and adjustments. This tilts the odds in favour of the defensive investor. :) I DCA monthly plus lump sum any extra income, special dividends or bonus pay during corrections in line with this strategy. Putting the extra cash during the recent US regional bank scare and the Kwarteng Gilt Blitz, for example, my yield on cost and overall return is healthy, but I could never have predicted either of those two events! Nor could I have taken advantage of these events playing out had I not put away some dry powder beforehand.

@TheCompoundingInvestor Жыл бұрын

You have summed this up really well. Thanks so much for your great insightful comment.

@not-a-russianbot8845 Жыл бұрын

Do you reinvest your dividends manually or do you use an accumulative fund? Are you already using your profits as passive income to pay for things or are you waiting until your returns are higher?

@TheCompoundingInvestor Жыл бұрын

Still have a full time day job so I’m continuing to grow the portfolio without taking any money out. I always reinvest the dividends manually as I like to choose where it goes. It also helps to rebalance the portfolio otherwise the larger holdings like BP and Shell would grow uncomfortably bigger than other sectors

@not-a-russianbot8845 Жыл бұрын

@@TheCompoundingInvestor thanks for the reply! I really like your channel and how you explain everything. You have a very reassuring voice that's easy to listen to.

@TheCompoundingInvestor Жыл бұрын

You are very welcome and thanks so much for watching and commenting.

@matpk Жыл бұрын

IUSA Vs VUSA Which is better?

@TheCompoundingInvestor Жыл бұрын

Both ETFs track the same index so their performance should be similar. IUSA is offered by BlackRock and VUSA is offered by Vanguard. Both have an expense ratio of 0.07%

@colinuk1984 Жыл бұрын

I've started investing now. It's been a week, and I don't own a Lambo yet, lol. Do you make any money from KZfaq!? Does that go into the markets or on the channel.

@TheCompoundingInvestor Жыл бұрын

Good luck on your investing journey. I make a small amount from advert revenue and at the moment this goes back into the channel e.g. equipment and software / apps

@macsidia Жыл бұрын

Never bet against the Swiss Franc

@quokkapirquish6825 Жыл бұрын

I have only recently started investing, hadn’t considered it ever until I received an inheritance. The pandemic lockdowns and corresponding market falls and predictable uplifts after the lockdowns ended were an open goal for investors. I remember being in the queue of B and Q with my mask on thinking that I should buy Kingfisher shares and buy gold. What an idiot I was to not act on it then, but am I being an even worse idiot for not adding to my banking shares right now?

@TheCompoundingInvestor Жыл бұрын

I've found banking shares to be extremely volatile over the years with one scandal after another. Its been 1 step forward and 2 steps back with them in my experience.

@quokkapirquish6825 Жыл бұрын

@@TheCompoundingInvestor …decent dividends though, yields are better now than ever?

@TheCompoundingInvestor Жыл бұрын

@@quokkapirquish6825 yields are pretty good I agree. I’m quite heavy in the banking sector however as I have Barclays, Lloyds, HSBC and also IG (banking services). When I first started I was 100% in banks as all I had was Barc, Lloyds and RBS. Glad I’m more diversified these days.