"Don't beat yourself. Beating yourself is half the problem."

Warren E. Buffett
(Pic : Mark Hirschey)

Said : Warren E. Buffett, CEO of Berkshire Hathaway Inc., in an interview with USA TODAY published on October 26, 2013. In the interview, Buffet advises investors to avoid top 3 mistakes while managing their wealth. The first one is not to time the market. According to Buffet, the short-term movement of the stock market cannot be predicted. So, don't do it and don't listen to people who do that. The second one relates to avoiding mimicking high-frequency traders. "Hanging on for the long term is a better strategy than flipping stocks like a short-order cook flips pancakes," he said. The third mistake to avoid is incurring large expenses in connection with their investing.

Buffett expressed his confidence in the US economy. "American business is going to do well. America is going to do well. So you have the tide with you. Building wealth in stocks is still the way to go, even though the ride can get bumpy from time to time," he said.

He also advised investors not to look at the prices of the stocks they own from week-to-week, or month-to-month, or even year-to-year. He is of the opinion that buying a cross-section of American stocks - spread over a time - and avoiding impulse buying just at the very top, can ensure overall good returns.