50 Tips to Invest Like the Greats

Here are 50 actionable tips to help invest like the world’s most successful investors—distilled from the wisdom of Warren Buffett, Charlie Munger, Peter Lynch, Benjamin Graham, Ray Dalio, and more.

50 Tips to Invest Like the Greats

1. Always do thorough due diligence before investing. investorsedge.cibc

2. Invest within your circle of competence—know what you understand best.

3. Prioritize businesses with enduring competitive advantages.

4. Buy at a margin of safety—only invest when there’s a clear discount to value. investorsedge.cibc

5. Think long-term: decades, not quarters or years.

6. Focus on cash flows, not reported earnings or market hype.

7. Look for owner-operator companies with skin in the game.

8. Study management integrity and capital allocation skills.

9. Prefer simple, understandable business models over complex ones.

10. Don’t follow the crowd—avoid herd mentality.

11. Embrace market corrections as opportunities, not threats.

12. Diversify, but not excessively—be selective with your bets. investorsedge.cibc

13. Reinvest profits for compounding returns.

14. Don’t chase “hot tips” or fad stocks.

15. Separate emotion from decision-making—remain rational.

16. Carefully read company filings, earnings reports, and footnotes.

17. Seek companies with strong balance sheets and low debt.

18. Monitor for changes in competitive landscape or management.

19. Don’t overpay for growth—growth for its own sake isn’t value.

20. Factor in taxes, inflation, and fees to your investment equation.

21. Ignore daily market noise—focus on business fundamentals.

22. Buy when others are fearful, sell when others are greedy.

23. Use market volatility to your advantage, not as a reason for panic.

24. Study the investing greats and read their letters and biographies.

25. Be patient—great investments take time to bear fruit.

26. Keep learning: read widely about business, psychology, and history.

27. Look for high returns on invested capital and strong free cash flow.

28. Invest in what you use and understand—see Peter Lynch’s “buy what you know.”

29. Respect risk—don’t risk permanent capital loss for extra return.

30. Consider macroeconomic trends, but don’t let them dominate your thesis.

31. Write an investment thesis and revisit it regularly.

32. Rebalance your portfolio when warranted, not reactively.

33. Don’t let past mistakes deter you—learn and improve.

34. Let winners run and cut losers quickly.

35. Use index funds or ETFs for broad exposure when stock picking isn’t viable. investorsedge.cibc

36. Understand the impact of incentives and human behavior on markets.

37. Track insider buying and selling as a clue—not gospel—of conviction.

38. Assess customer loyalty and brand value.

39. Consult expert networks or industry insiders for “on the ground” insights.

40. Anticipate change, but don’t speculate wildly on what “could” happen.

41. Automate saving and investing for consistency and discipline.

42. Be humble—no one always gets it right.

43. Practice position sizing appropriate to conviction and risk.

44. Remember opportunity cost—sometimes the best action is no action.

45. Review your holdings for “thesis creep”—has your rationale changed?

46. Don’t let sunk costs bias hold you hostage in bad investments.

47. Read annual reports and investor presentations from competitors.

48. Assess global trends but don’t ignore local/regional context.

49. Network with other thoughtful investors for feedback and ideas.

50. Define your own investment objectives, risk tolerance, and time horizon.

This checklist reflects principles and strategies that underpin world-class investing success. Integrate them into your process for rational, long-term, and compounding gains. investorsedge.cibc