first_img Enter Your Email Address Tom Rodgers | Tuesday, 10th November, 2020 No savings at 40? I’d use the Warren Buffett method to get rich and retire early Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. TomRodgers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short December 2020 $210 calls on Berkshire Hathaway (B shares). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Warren Buffett is certainly rich enough to retire, but at the rate he’s going it looks like he may never do so. The Oracle of Omaha is 90 and shows no signs of slowing down. While I admire Warren Buffett’s incredible fortitude, personally I would like to start taking it a little easier when I hit retirement age. For me that means golfing constantly and drinking fine wine. For others it might just mean giving up work to spend more time with family and friends.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…So how do I use Warren Buffett’s investing method to get rich and retire early? Thankfully it’s relatively simple. How Warren Buffett started investingWarren Buffett made his first investment at the tender age of 11. He was working in his family’s grocery store in Omaha, a small city in the state of Nebraska in America’s Midwest. Young Warren spotted a fast-growing stock called Cities Service, an oil and gas firm that supplied small public utility companies. With the help of his broker father, Warren bought six shares at $38 per share. While initially it dipped to $27, the company’s share price then rose to $40 per share. Warren decided to realise his 5.2% gain almost immediately. What happened next shocked the young boy. Cities Service shares soared to $200 per share. If he had held on a little longer Buffett would have made a 426% gain. In his eyes this was a huge failure. It would inform his investing method and kickstarted a lifelong obsession. Buy and hold to get richMost UK investors focus too much on short-term price movements. That’s just a fact. But Warren Buffett became a billionaire by compounding slow, steady incremental gains. Many of the stocks in his Berkshire Hathaway portfolio have been held for decades. Take Coca-Cola. Buffett first bought shares in the drinks giant in 1988 and has held on for 32 years. While Coca-Cola only pays a 2.9% dividend yield, the company has a ‘progressive’ dividend policy. This means it will try to increase the proportion of income it pays out to shareholders every year. It has raised its dividend per share for the past 50 years in a row.So compound gains are their most powerful when shares are held for a long period of time. Even though I’m in my 40s now, I’ve still got 30+ years of investing ahead of me. This is more than enough time to build serious compound gains.Get progressiveInstead of realising short-term gains by buying and selling shares frequently, Warren Buffett now tends to hold on to stocks for a very long time. He chooses shares he thinks will grow their dividends too.Some well-known FTSE 100 companies with progressive dividend policies include Astrazeneca and British American Tobacco. UK investors might be tempted to choose the second of these options for its 8.33% yield today. Astrazeneca, by contrast, only pays a 2.57% yield. But it’s perfectly possible that Astrazeneca might improve its dividends by a lot more than British American Tobacco does over the next 30 years. I would say there’s more of a future in pharmaceuticals and vaccines than there is in smoking and tobacco products. Learning investing lessons (like researching carefully, holding for the long term and choosing progressive companies) isn’t always easy. But I think they can help me get rich and retire early better than any other method.center_img 5 Stocks For Trying To Build Wealth After 50 Click here to claim your free copy of this special investing report now! Our 6 ‘Best Buys Now’ Shares See all posts by Tom Rodgers Simply click below to discover how you can take advantage of this. Image source: The Motley Fool last_img read more