Not confident to invest? I'd follow these 2 Warren Buffett tips

It can pay to listen to the Oracle of Omaha's advice.

One of the hardest parts of an investment journey is simply getting started.

It can be overwhelming to part with your hard-earned money and put it into ASX shares.

But history shows that doing so can be very rewarding. For example, over the last 30 years, the Australian share market has delivered an average return of approximately 10% per annum.

This means that if you had invested $10,000 into ASX shares three decades ago and earned the market return, it would have compounded into approximately $175,000.

And that's just a single investment. If you had added to your holding periodically, your wealth would have ballooned further.

But if you're still not sure, then it could be worth listening to some Warren Buffett tips to give you confidence.

He has been investing with Berkshire Hathaway (NYSE: BRK.B) since the 1960s and has seen it all. And, importantly, he has beaten the market over multiple decades.

Legendary share market investing expert and owner of Berkshire Hathaway, Warren Buffett.

Image source: The Motley Fool

Warren Buffett tip #1

The first Warren Buffett tip for beginner investors to think about relates to buying wonderful companies.

It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

While it would be amazing to buy a wonderful company at a dirt-cheap price, this rarely happens to the highest quality investment options.

So, don't be afraid to buy the very best shares at a fair price. Over the long term, the returns are likely to still be superior to buying an average company at a cheap price.

Tip #2

Another thing that Warren Buffett emphasises is that you don't have to always pick absolute winners to be successful. Just a few winners in a portfolio over time can generate significant wealth for you.

The weeds wither away in significance as the flowers bloom. Over time, it takes just a few winners to work wonders.

The key is to build a balanced portfolio of high-quality ASX shares and let time and compounding do its thing.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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