Taking Warren Buffett’s Wisdom to Heart

Hey Traders!

Yesterday, I joined Charles Payne for Earnings Watchlist Monday, along with my take on Warren Buffett’s annual letter to shareholders.

Check it out here:

Catch the replay of the segment, where @traderDanielle gives her take on Warren Buffett's principles and reacts to earnings season on 'Making Money.'https://t.co/Fb0FDnik84

— Simpler Trading (@simplertrading) February 27, 2023

Warren Buffett is arguably one of the best investors of all time. I think we can take a lot of tidbits from him and his annual letter to shareholders.

Here are a few of my favorite nuggets:

“Please note particularly that we own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers.”
“The world is full of foolish gamblers, and they will not do as well as the patient investor.”
“Don’t bail away in a sinking boat if you can swim to one that is seaworthy.”
“There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is
dangerous. A string of wonderful numbers times zero will always equal zero. Don’t count
on getting rich twice.”
“You have to keep learning if you want to become a great investor. When the world changes,
you must change.”

-Warren Buffett

I know we focus a lot on short-term trading takes, but looking at your long-term investment strategy, especially amid this drawn-out bear market, makes a lot of sense.

Like Warren Buffett, I focus on buying stocks with solid businesses demonstrating a long-term bullish trend on the weekly chart pattern, increasing EPS + revenue numbers, and growing dividends. I like to buy stocks of companies in which I like and use their products. When you follow a company’s business or use its products, you can better judge if that company is growing or dying.

P.S. Want to learn more? Join me in the Simpler Trading Options Gold Room! You can find me there weekly on Tuesday & Wednesday from 1-2pm CT.

Up Next...

Intraday to Swing Trading Indicator

Since Danielle is out this week for spring break, Allison Ostrander, Director of Risk Tolerance, will cover how she’s used her Divergent Bar indicator for short-term earnings trades. This tool has allowed Allison to take low-risk trades prior to an earnings announcement with a good probability of following through with a higher high. She’ll also … Read more

The Monday Kickoff

Hey Traders! It’s only Tuesday, yet so much has already occurred in the market. Bank news rattled the markets last week and continued rattling them over the weekend. CPI data hit this morning, and it was in line with expectations. I view that as a positive because anything other than an inline reading could have … Read more

The Relative Strength Winners

The indexes have been sloppy, in addition to being relatively weak. The choppiness has some benefits, though, as this choppiness has meant that squeezes are consolidating everywhere. I can’t say I recall a time in which I have seen so many squeezes across so many different indexes and sectors simultaneously. What does that mean? It … Read more

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.