It would be difficult to discover a success story more spectacular than Oprah Winfrey when it comes to big success. Winfrey had nothing but passion and ambition to lead her on the route to becoming a media tycoon, philanthropist, and multibillionaire from her humble beginnings growing up in a destitute family in Kosciusko, Mississippi.
The entrepreneur's media holdings were mostly responsible for her ascent to fame and wealth, but her lucrative 2015 investment in Weight Watchers International (WW -7.63%) also helped to create some of her formidable stock-buying credibility.
Here are five wise words of wisdom from one of the world's most powerful women that can aid you on your investing path.
1. Buy what you know
WW has given me the tools to begin to make the lasting shift that I and so many of us who are struggling with weight have longed for. I believe in the program so much I decided to invest in the company and partner in its evolution. -- Oprah
Oprah has long struggled with her weight and has utilized a variety of diets in front of the world. She reportedly attempted the Weight Watchers program and found it to be a fruitful and beneficial method of weight loss and weight maintenance. Oprah made a 10% investment at a time when the company's stock was in trouble and she also joined the board.
2. Buy and hold for the long term
Since it is hard to time the market, savvy investors seek out businesses with solid fundamentals and the potential for long-term success. All businesses will have challenges along the way, but building lasting wealth requires looking to the long term rather than making decisions based on the challenges that business will unavoidably confront now.
When Weight Watchers shares were being sold for $6.79 five years ago, Oprah purchased some. The stock originally rose after news of her purchase, but in 2016 it fell once more. Oprah, however, continued to hold onto her shares because she had faith in the company's future. Eventually, the price rose once more, reaching a high of $101 per share at one point. The megastar is still clinging onto her shares even though the stock's price has considerably decreased since then.
3. Do your research
"I still think twice before I buy anything." -- Oprah
Do you feel the urge to buy a hot stock right away in order to take advantage of the opportunity? Momentum purchases might occasionally succeed, but it isn't a guarantee.
Instead, follow Oprah's recommendation and give it some thought before buying stock in a company. Spend some time researching about the different investments you might make and how to assess a company's value. Study valuation indicators like price-to-book ratios, return on equity, and price-to-earnings ratios to learn about the basics of investing. When a firm runs into difficulties, you'll be able to refer back to your original acquisition thesis if you have a solid foundation for doing so.
4. Failure is part of success
Do the one thing you think you cannot do. Fail at it. Try again. Do better the second time. The only people who never tumble are those who never mount the high wire. -- Oprah
Even the most seasoned investors occasionally lose money. Yes, THE Warren Buffett, has made more than his fair share of mistakes. For instance, he lost all $443 million of his investment in Dexter Shoes because he failed to research the competition. He also occasionally waits too long to execute a sale, allowing the stock to continue to decline.
You're going to make blunders when investing. But what matters is that you keep investing, learn from your mistakes, and don't repeat them.
5. There are no free rides to wealth
The big secret in life is that there is no big secret. Whatever your goal is, you can get there -- as long as you're willing to be honest with yourself about the preparation and work involved. There are no back doors, no free rides. There's just you, this moment, and a choice. -- Oprah
One strategy to build wealth is by making stock market investments. You can watch your balance rise and your wealth assemble by investing your savings regularly year after year. Retirement plans, like 401(k)s or IRAs, are among the finest ways to invest since they include tax advantages that can help your money grow over the long run.
Can investing help you become a millionaire? Yes, as Oprah claims, it's not truly a secret. The million dollar mark is within reach by setting goals, putting money aside, and putting in the effort required to make sure that your portfolio remains diverse and balanced.
Everyone who began with little has found inspiration in Oprah Winfrey. The media magnate has amassed a fortune through guts and perseverance and its
valued at $2.6 billion. While heeding her instructions won't make you rich or grant you a free automobile, it will give you enough money to live a happy life, enjoy a comfortable retirement, and purchase any car you like.