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5 investment tips from Oprah Winfrey

When it comes to great success stories, it would be hard to find a more impressive one than Oprah Winfrey. From her humble roots growing up in a poor family in Kosciusko, Mississippi, Winfrey had nothing but the drive and ambition to guide her down the path to becoming a media mogul, philanthropist, and multi-billionaire.

The entrepreneur’s rise to fame and fortune is primarily due to his media holdings, but he also established some of his formidable stock-market credibility through his lucrative investment in Weight Watchers International (NASDAQ:WW) in 2015.

Here are five sound tips from one of the world’s most influential women that can guide you on your investing journey.

Oprah Winfrey. Image source: Harpo Inc./Ruven Afanador.

1. Buy what you know

WW gave me the tools to start making the lasting change that I and so many of us who struggle with weight have been yearning for. I believe in the program so much that I decided to invest in the company and be a partner in its development. –Opra

Oprah has always struggled with her weight and very publicly used all types of diets to control it. Apparently, she tried the Weight Watchers diet and found it to be an effective and healthy way to lose weight and keep it off. When the company’s stock floundered, Oprah made a 10% investment and also joined the board.

2. Buy and hold for the long term

It’s impossible to time the market, so successful investors look for companies with strong fundamentals that can succeed over the long term. All businesses will have challenges along the way, but creating real wealth means keeping an eye on the future instead of taking action based on short-term challenges that a business will inevitably face.

Oprah bought shares of Weight Watchers five years ago when they were selling for $6.79. Although news of her purchase initially sent the stock soaring, it then fell again in 2016. But Oprah still held her stock because she believed in the future of the company — and ultimately, the stock. rose again, up to $101 per share. at one point. Its price has dropped significantly since then, but the megastar is still holding onto its shares.

3. Do your research

“I still think twice before buying anything.” –Opra

When you see hot stock, does it make you want to jump on board so you don’t miss out? It may work on occasion, but momentum purchases don’t always materialize.

Instead, take Oprah’s advice and think twice before buying stock in a company. Invest some energy in learning more about your potential investments and understanding ways to tell if a business is a good value for money. Learn about the fundamentals of investing and study valuation metrics, such as price/earnings ratio ratios, price to book reports, and return on equity. If you have a fundamental foundation for buying a business, you will be able to revert to your original purchase thesis when the business encounters difficulties along the way.

4. Failure is part of success

Do the one thing you think you can’t do. Fail it. Try again. Do better the second time around. The only people who never tumble are the ones who never step on the high wire. –Opra

Even the most successful investors will sometimes fail. Warren Buffett – yes, THE Warren Buffett – did his share of blunders. For example, he lost his entire $443 million investment in Dexter Shoes for neglecting to check the competition, and sometimes he waits too long to pull the trigger on a sale when the stock may drop further. in addition.

You will make investment mistakes. But the important thing is to learn from them, keep investing and avoid making the same mistakes again.

5. There are no free spins to riches

The big secret in life is that there is no big secret. Whatever your goal, you can achieve it – as long as you’re willing to be honest with yourself about the preparation and the work involved. There are no backdoors, no free spins. There’s only you, this moment, and a choice. –Opra

Investing in the stock market is a way to create wealth. By consistently investing your savings year after year, you can watch your balance grow and your wealth grow. One of the best ways to invest is to retirement planslike 401(k)s or IRAs, which offer tax advantages that can make your money grow in the long run.

Can you become a millionaire by investing? Yes, because as Oprah says, it’s really no secret. By setting goals, saving money, and doing the work necessary to ensure your portfolio remains balanced and diverse, the million dollar mark is within reach.

Oprah Winfrey was an inspiration to anyone who started with very little. Thanks to his courage and determination, the media mogul has amassed a fortune of $2.6 billion. Following his advice might not turn you into a billionaire and certainly won’t earn you a free carbut it will help you have enough money to enjoy your life, have a comfortable retirement, and buy the car your heart desires.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.