64% of surveyed Aussie investors embrace this 'Warren Buffett method'. Do you?

Warren Buffett likely counts as the investor most of us would like to emulate.

A businessman hugs his computer and smiles.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Warren Buffett likely counts as the investor most of us would like to emulate.

Not his regular diet of McDonald's and Cokes, maybe. Though at 92, the investing guru certainly is still going strong.

But after starting his life with virtually no money, Warren Buffett has managed to amass a personal fortune of some US$115 billion. And the Oracle of Omaha has delivered more than half a century of outperformance at Berkshire Hathaway.

He's done this with some surprisingly simple methods.

"Embrace what's boring, think long-term, and ignore the ups and downs," he advises.

As for that long-term thinking, Warren Buffett once quipped, "Our favourite holding period is forever."

Which brings us back to how Aussie investors are working to build their own wealth.

Do you follow this Warren Buffett investing method?

According to new research from online brokerage Stake, around 50% of Australian investors plan to hold onto their investments for at least 10 years, while 29% said they'll likely hold their investments for six to 10 years.

Only 5% of respondents said they were looking to build wealth via short-term trading.

In what Stake dubbed 'The Warren Buffett method', 64% of Aussie investors said they had a positive 10-year outlook on their investments.

With cost of living pressures biting, however, 39% of investors said they've reduced their allocations to savings and investments. Although 65% have made investments over the past six months.

And despite the economic downturn, 67% of respondents said they haven't sold any investments over the past year. A buy and hold strategy Warren Buffett would no doubt approve of.

Inflation was a concern for most of those surveyed, with 56% saying that "wages not keeping up with inflation" was causing financial distress.

Commenting on the survey results, Stake CEO Matt Leibowitz said: 

The pandemic may have been the catalyst for more Australians engaging with the markets, but it's now clear that this was the start of a long-term shift.

Given the high barriers to entry in the property market, and financial stability being less certain, ambitious Australians increasingly see investing as a way to protect their future.

Which brings to mind another Warren Buffett investing pearl.

"The greatest protection against inflation is ownership in a business that goes up in value."

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

More on How to invest

A happy young couple lie on a wooden deck using a skateboard for a pillow.
How to invest

How to build wealth with ASX shares without taking big risks

Many investors believe they need to chase high-risk, speculative ASX shares to grow their wealth quickly. But in reality, most…

Read more »

Happy man holding Australian dollar notes, representing dividends.
How to invest

How $500 a month in ASX shares could become $1 million

It might not be as hard as you think to become a millionaire through the share market.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
How to invest

How to invest when the ASX hits a record high

Worried about buying at today's prices? Here's why you shouldn't be concerned.

Read more »

A man wearing glasses sits back in his desk chair with his hands behind his head staring smiling at his computer screens as the ASX share prices keep rising
How to invest

Lessons from a self-made ASX millionaire

Here's how he did it.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
How to invest

$20,000 in savings? Here's how to target $1,000 of passive income each month

This could be the easiest way to build a meaningful passive income from the share market.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
How to invest

The 3 rules new ASX share investors should always follow

These rules could help you generate wealth in the share market.

Read more »

Person holding Australian dollar notes, symbolising dividends.
How to invest

How to build a $1,500 monthly income stream with ASX dividend shares

It isn't as hard as you think to build a monthly income stream on the share market.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
How to invest

How to start your ASX share portfolio with just $1,000

Investing doesn't need to be hard. Here's an easy way to start.

Read more »