Warren Buffett Shares 5 Requirements for Making Money in the Stock Market
Warren Buffett has decades of investing success under his belt -- and the multibillion-dollar net worth to prove it. Fortunately for the entire investing community, he shares his expertise in interviews and annual letters to Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shareholders.
In Buffett's 2020 shareholder letter, he identified five requirements for making money in the stock market.
The stock market's long-term average annual growth rate is about 7%, net of inflation. But you won't earn that 7% every year. You might lose 20% this year, gain 8% next year, grow another 10% the following year, and so on. As more years pass, the good years eventually outpace the bad ones.
Source Fool.com
