Warren Buffett once said you only have to do ‘very few things right’ in life — 3 investing mistakes that can put your retirement at serious risk

This article adheres to strict editorial standards. Some or all links may be monetized.

After nearly seven decades of experience, investing legend Warren Buffett has accumulated more than $142 billion in personal wealth — and the Oracle of Omaha believes much of his success is based on his ability to avoid losing money.

Buffett has always advocated a long term investment approach — which is perhaps the reason why his strategies resonate with millions of people.

Must Read

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
• I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 6 of the easiest ways you can catch up (and fast)
• Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

“You only have to do a very few things right in your life so long as you don’t do too many things wrong,” he once said.

With that in mind, here are 3 investment mistakes Buffett says you should avoid in order to secure your fortune for the long term.

1. Speculating instead of investing

Some investors fail to recognize the difference between a speculative asset and an investment-worthy asset. According to Buffett, the difference is in how the asset generates a return.

“All investment is laying out some money now to get more money back in the future,” Buffett once explained. “Now, there’s two ways of looking at getting the money back. One is from what the asset itself will produce. That’s investment. [The other] is from what somebody else will pay you for it later on, irrespective of what the asset produces. And I call that speculation.”

Buffett believes that assets that produce income organically — such as farmland, profitable companies, dividend stocks and real estate investment trusts — are investment-worthy.

You can build your own circle of competency with trusted advisors who bring their expertise on growing wealth — and Advisor.com can help you find a financial professional that’s right for you.

Advisor.com is a free online platform that connects you with vetted financial advisors. Just answer a few quick questions about yourself and your finances, and the platform will match you with experienced financial professionals best suited to help you develop a plan to achieve your financial goals.

You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

There is also an accessible family office option for established investors with larger portfolios.

2. Trying to time the market

Market timing is tempting but deceptive. Investors often convince themselves they can wait for the right time to buy or sell a stock. However, experienced investors understand that market cycles are unpredictable, so staying invested for longer is typically the best approach.

"You shouldn’t buy stocks unless you expect to hold them for a very extended period and you are prepared financially and psychologically to hold them," Buffett had said during Berkshire Hathaway’s annual meeting in 2020.

If you are investing for retirement, you need to make sure you are picking the right stocks. Also, you need to make sure you are planning correctly to meet your short-term goals without having to cash out your portfolio.

You can get a shortcut for understanding which stocks are worth buying and holding with Moby. Their superior research can help you reduce the guesswork when selecting stocks and ETFs.

With easy-to-understand formats, their team of former hedge fund analysts and experts demystifies the stock market, so you can become a wiser investor in just five minutes.

In four years, across almost 400 stock picks, Moby’s recommendations have beaten the S&P 500 by almost 12%, on average.

Read more: Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

3. Hedging against volatility

Real estate has historically been less speculative than stocks, with stable returns generating a steady stream of passive income. It is often touted as one of the best avenues to build wealth — a move that can pay off brilliantly for your retirement.

However, with home prices steadily increasing over the past few years, direct ownership of residential real estate might be challenging.

But that doesn’t mean you can’t tap into the $30 trillion home equity market, with real estate crowdfunding companies that let you invest in residential properties without constantly worrying about mortgage or home maintenance expenses.

Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties, which gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 A.M. tenant calls.

Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide, guided by proprietary underwriting and market analytics typically used by large institutions.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a permanent, verifiable record of each stake.

Getting started is a quick and easy process. With a minimum investment of $250, you can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest in the properties of your choice in as little as 30 seconds.

A recent report from Cushman & Wakefield also commented, “for the first time in years, the retail market is at a point of being supply-constrained — at least for space in quality shopping centers."

With both commercial and residential supply constrained, rental prices could be pushed higher, creating attractive returns for investors.

For accredited investors looking to expand their portfolios and make a larger allocation, First National Realty Partners (FNRP) offers accredited investors access to retail-anchored real estate investments, without the legwork of finding deals yourself.

The FNRP team has developed relationships with shopping centers and health-care facilities across the U.S., as well as the nation’s largest essential-needs brands, including Kroger, Walmart and Whole Foods.

They also offer white-glove service for investors, providing key market insights and finding the best properties both on and off-market, while investors can passively collect distribution income.

You can engage with experts, explore available deals and easily make an allocation, all in one personalized secure portal.

To truly accelerate your net worth, consider getting expert guidance across all areas of your wealth. That’s where the trusted team of financial planners at Range can come in.

For high-earning professionals or households making over $200,000, Range offers a smart, streamlined way to manage your full financial life — especially your real estate investments.

Through a strategic partnership with Engineered Tax Services, Range members receive free cost segmentation analysis and discounted cost segmentation studies. Range advisors will then use the study as part of a member’s tax planning and strategy.

Cost segmentation shortens depreciation timelines — from the standard 27.5–39 years down to just 5–15 years—allowing you to claim significantly larger tax deductions sooner and keep more money in your pocket. Note that only investment properties qualify for segmentation studies.

Range also delivers proactive advice across your entire financial life — not just real estate or taxes

From stock options and tax strategies to real estate and big-picture planning, Range integrates it all under one roof. With a transparent, flat annual fee — no hidden costs or percentage-of-assets surprises — you get AI-powered insights and comprehensive guidance designed to scale with your wealth.

What to read next

• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• There’s still a 35% chance of a recession hitting the American economy this year — protect your retirement savings with these 5 essential money moves ASAP
• This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchase. Here’s how to buy the coveted asset in bulk
• Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.