Investing Advice from Top Financial Minds

In search of timeless wisdom for your investment journey, we've gathered the most impactful advice from top financial minds, including Chief Investment Officers and CEOs. From exploring small- and mid-cap stocks to investing in personal development, discover 20 pieces of investing advice from seasoned professionals to add to your back pocket.

Explore Small- and Mid-Cap Stocks

The best investing advice I ever read was to focus on looking for opportunities in small- and mid-cap stocks. This idea came from Peter Lynch's book "One Up on Wall Street," which was profoundly influential to my investing approach.

Lynch is widely considered a legend based on his performance managing Fidelity's Magellan Fund. In his book, he explains how individual investors can outperform Wall Street professionals. Lynch points out that large institutional investors, managing billions in funds, are limited to around 10-15% of tradable stocks because of the sheer size of their portfolios. They simply can't invest in smaller companies without moving the market or taking on significant risks.

This dynamic creates an opportunity for boutique investment managers. Smaller companies often grow faster than large ones, albeit with more volatility. This is because they're starting from a lower base, which allows for higher growth in percentage terms. It's much easier for a $1 billion company to double in size than it is for a $100 billion company. Smaller companies, therefore, have more room for expansion in their markets. Their smaller size also makes them nimble, allowing them to quickly adapt to new conditions. Finally, with less analyst coverage and fewer other investors, there's a higher chance of finding undervalued companies that the market has not yet fully recognized.

Asher Rogovy, Chief Investment Officer, Magnifina

Invest with Full-Time Commitment

The single best investing advice I've ever received is to always ask yourself one question before you write a check:

If everything were to fail, and this business were to hit really tough times, would you be willing to jump in and work full-time on the business to make it successful again?

If you don't believe that the business is worth all of your time or is important enough that you would dedicate your life to work on it, it isn't important enough to invest in.

It forces you to pick the opportunities that you believe the most in and that you want to focus the most on. In short, it's shifting the mindset from placing bets with money to placing bets with your future time.

Typically, after you make the decision, you'll invest in the businesses you believe in the most. You'll naturally pay attention to them, keep tabs on them, and research everything you can to keep you in the loop to help the organization.

It gives you an unfair advantage when you're investing because you will have more information than other potential investors.

Jeremy Horowitz, CEO, Let's Buy a Biz!

Practice Regular, Long-Term Investing

The best advice I've received is to invest regularly, stay invested, and not try to time the market. Over 25 years as an investment advisor, I've seen every market cycle and clients make every mistake. Those who dollar-cost average into the market month after month, year after year, come out far ahead. It's boring, but it works.

I started my career in the 1990s and saw the dot-com bubble burst, wiping out millions of investors who got in late. The clients who stayed invested recovered and went on to big gains. The financial crisis of 2008 was even worse, but within a few years, the market reached new highs. The investors who panicked and sold at the bottom locked in huge losses.

Even this year, despite fears of recession, the market is up over 25% so far. Every crisis seems terrifying in the moment, but the market always recovers. As long as you have a well-diversified portfolio and a long time horizon, time in the market, not market timing, is the key. The more you save and the longer you stay invested, the less short-term events matter. Compounding returns are the real secret to building wealth.

David Blain, CFA, Chief Executive Officer, BlueSky Wealth Advisors

Focus on Cash Flow Investments

One piece of investing advice that has profoundly influenced my approach to helping clients navigate the property market is: "Invest for cash flow, not just capital gains." This wisdom encourages focusing on investments that generate ongoing positive cash flow, ensuring not only immediate returns but also financial stability and the ability to leverage opportunities as they arise. It's a strategy that has guided my own successful investments and shaped the advice I give to first-time home buyers and investors alike.

Matt Willoughby, Founder, OneStop Financial Solutions

Embrace Long-Term Growth Strategy

Investing for the long term has always been the cornerstone of my strategy. This approach allows gains to compound and significantly reduces risk. Early in my career, a mentor told me to view investments as growing trees—they need time to develop robust roots before flourishing. This wisdom helped me stay committed and patient, even during volatile market fluctuations. Building a diversified portfolio, reinvesting dividends, and focusing on growth industries has always been part of my methodology. I have seen firsthand how consistent, long-term investing can build substantial wealth. This advice has guided not only my professional investment roles but also my personal financial decisions, underscoring the effectiveness of patience and strategic planning.

Ace Zhuo, Business Development Director (Sales and Marketing), Tech & Finance Expert, TradingFXVPS

Adhere to a Comprehensive Financial Plan

The single best piece of investing advice I've ever received is to have a well-defined plan and stick with it. As a financial planner and money manager, I am frequently asked for tips on the best accounts for savings, minimizing taxes, and investment strategies. While many individual pieces of guidance are available, the most crucial advice is to create a comprehensive financial plan.

This plan should encompass your financial goals and milestones, monthly budget, regular savings targets, and risk tolerance. It should also include tax-saving strategies to ensure you are optimizing your investments.

My career is now centered around helping others plan their financial future, but it was the planning advice I received at a younger age that set me up for a bright financial future and career. Having a plan and adhering to it is the cornerstone of successful investing and financial management.

Chad Harmer, Senior Financial Planner & Managing Director, Harmer Wealth Management

Target Companies in Great Markets

Crucial for me was the investing advice by Don Valentine of Sequoia Capital: "Great markets make great companies." This idea has become my guiding principle in personal investing and at work, where I take the other side of the game, shaping strategy and managing investor relations for an educational technology startup.

From an investor's perspective, this advice helps navigate the saturated business landscape, go "big" beyond immediate gains, and balance opportunities versus risks. Focusing on the right market allows an investor to zoom in and identify companies that address clear, understandable needs and have healthy financials or clear pathways to reach them.

My professional background underscores the relevance of this approach from a business perspective. For instance, education is an evergreen market that is now experiencing its third major technological shift in 30 years. After widespread internet adoption in the 1990s and the mobile technology breakthrough in the 2010s, we're seeing the transformative potential of AI and Gen AI in the 2020s. Focusing on the expansive education market and positioning the company at the intersection of technology and learning helps build a business capable of thriving amidst these shifts. Being on the board of a small startup that has grown into an EdTech ecosystem, reaching 100+ million users globally, I've witnessed the power of identifying and positioning within great markets.

Oleksandr Yaroshenko, Head of Strategy and Investments, Headway

Invest in Understandable Ventures

The best investing advice I have ever heard is "invest in what you understand." This gem, often cited by Warren Buffett, has stayed with me throughout my investment strategy and decision-making process.

The point of this advice is to have general knowledge of your investments, not to simply follow trends or hot tips. It is about the confidence to say "no" to any investment you don't fully understand, no matter how good it seems to be.

This advice has saved me from some big losses over the past several years in the so-called "hot" but misunderstood investments. It has also instilled confidence to help me remain invested in quality during turbulent times. It has been essential in developing my investment growth.

Note that "understanding" does not necessarily mean that you have to be a guru in every business. Rather, it means you understand clearly how the company generates its money, the competitive advantages, and which key factors will lead to success or failure.

This principle enhanced not only the returns on my investments but also made investing much more fun and less stressful. It just turns investing into a learning curve for continuous improvement rather than a guessing game that often creates anxiety among people. Remember, invest in what you understand.

Lyle Solomon, Principal Attorney, Oak View Law Group

Start Investing Early and Consistently

My financial advisor here in Austin, Texas, Michael Harris, once told me, "Invest early and consistently. Starting now lets your money work harder through compounding interest. The sooner your money starts working for you, the closer you will be to your financial goals." This approach emphasizes the wisdom of making your investments grow exponentially over time, rather than waiting for the "right moment" to start. It's not just about setting aside money, but making strategic choices that leverage time to your benefit. Therefore, every moment delayed is a potential gain missed. Starting early transforms your financial strategy from merely saving to actively increasing your wealth.

Chase Williams, Managing Partner, Market My Market

Avoid Investing Borrowed Money

One of the most valuable pieces of investing advice I've ever received is: "Don't invest borrowed money." This guidance emphasizes the importance of only investing money you can afford to lose. Investing borrowed funds can lead to significant financial stress and potential losses that could be difficult to recover from. By using your savings, you maintain greater control over your financial situation and reduce the risk of debt. This advice has helped me make more cautious and informed investment decisions, ensuring my financial health remains stable even if the market fluctuates. In my experience, this approach fosters a more sustainable and responsible investment strategy, leading to long-term economic stability.

If you follow this advice, you can avoid the pitfalls associated with high-risk borrowing and maintain a more secure financial footing.

Richard Dalder, Business Development Manager, Tradervue

Invest in the Future

The single best piece of investing advice I've ever received is to invest in the future. It might sound simple, but in my experience, the best advice is often the advice that seems, at least on the surface, to be a little boring. And that's especially true when it comes to investing, where success is often found within the simple.

But investing in the future really means focusing on a few key details:

• Focus on compounding returns - A long-term perspective allows you to harness the power of compounding interest to generate more and more revenue from your investments over time.
• Ignoring market fluctuations - If you want to focus on success, then staying in the market and riding out short-term volatility can help you make the most of a market that generally trends upwards over time. As the saying goes, it's time in the market rather than timing the market.
• Cultivating emotional discipline - There's one kind of investor nobody wants to be, and it's the emotional one. But an investment strategy that focuses on the long-term outlook is naturally defended against emotional reactivity and short-termism. And any help you can get in this area is key because learning how to invest without your emotions is a lifelong practice.

Erika Kullberg, Attorney, Money Expert, and Founder, Erika.com

Begin Early and Maintain Consistency

The single best piece of investing advice I've ever received is to start early and be consistent. This principle was a game-changer for me, especially when I was tackling my student loan debt. The power of compound interest is truly remarkable, and the earlier you start investing, even with small amounts, the more time your money has to grow. I learned that it's not about timing the market, but time in the market that makes the difference.

This advice encouraged me to start investing a portion of my income as soon as I could, even while paying off debt. It taught me the importance of making investing a habit, regardless of market conditions. This consistent approach has been crucial in building long-term wealth and achieving financial freedom.

Brian Meiggs, Founder, My Millennial Guide

Combine Consistency with Growth Focus

Investing has always been a priority for me, even from a young age. Navigating through the vast amount of information—and misinformation—available made it crucial to find reliable, impartial sources for investment advice.

The single most valuable investing advice I've ever received is the importance of consistency. Regular, disciplined investing not only builds wealth over time but also harnesses the power of compounding returns. By investing a fixed amount consistently, regardless of market conditions, one can mitigate the impact of volatility and reduce the average cost of investments over the long term. This approach helps maintain focus on long-term financial goals and fosters a gradual increase in one's investment portfolio, avoiding the pitfalls of market timing, which often leads to missed opportunities.

Additionally, when I was younger, I received advice to invest in areas with high growth potential. This strategy makes full use of the longer investment horizons that younger investors have, allowing more time for assets to appreciate and recover from market fluctuations. Focusing on sectors or assets poised for growth—such as technology, emerging markets, or innovative startups—can significantly boost returns over decades.

When I started my companyl, taking that initial risk was daunting. At a younger age, without the responsibilities of a family, I felt more comfortable pursuing such ventures, applying the same principles of investing—taking calculated risks and focusing on growth potential.

By blending consistent investment practices with a focus on high-growth opportunities early in one's career, an investor can greatly benefit from the combined advantages of compounding returns and sector growth, thereby laying a strong foundation for future financial security.

Joshua Kimmes, CEO, Bear North Digital

Continuously Educate in Finance

In my work as a CPA and Managing Partner at my company, I have counseled businessmen and investors. However, the greatest investment advice I received from another would have to be this: never stop investing in your financial education, regardless of your perceived expertise.

Understanding that despite my extensive financial knowledge and considerable experience as a finance professional, I still need to continuously learn and improve has been critical for achieving financial success as an investor. Undeniably, new technologies and regulations, emerging market dynamics, and new investment opportunities are rising at unprecedented rates. And with the financial landscape constantly evolving, one cannot simply remain complacent. So, I am grateful for this important piece of advice and take it to heart by staying committed to expanding my knowledge. That way, I can readily adapt to changes, make more informed decisions, and optimize my portfolio.

After all, financial literacy is not a one-time achievement but an ongoing journey that equips you to navigate and succeed in any market condition.

Sherman Standberry, CPA and Managing Partner, My CPA Coach

Invest in Client Relationships

The best advice I can give is to invest in relationships. Focus on understanding and meeting the needs of your clients/customers, forging long-term, trust-based partnerships. This approach not only builds a reliable company but also drives sustainable growth.

Mohammed Kamal, Business Development Manager, Olavivo

Maintain Enthusiasm Through Setbacks

The best piece of advice I have ever received is that you must be willing to maintain enthusiasm despite repeated setbacks. Entrepreneurship is not for the faint of heart. The founders who"'get lucky" are the ones who keep getting up after getting knocked down.

There is nothing sexy about entrepreneurship. Although often glamorized by media, building a business is an endurance sport. Some days, it can feel like you're running up a mountain of sand—hard to find your footing and slow to make progress. But every day you are also learning, growing, and evolving your skill set. Achieving success in any career is challenging. Challenges will arise daily, and they don't lessen with time or accomplishment. But as an entrepreneur, you get to 'choose your hard.'

Samantha Pantazopoulos, Co-Founder + CEO, Vizer

Assess Your Risk Tolerance

There will always be a downturn in the market—and I learned this firsthand during the COVID-19 pandemic when I lost about 30% of my net worth due to the stock market falling dramatically during lockdowns. For me, this was okay, because I am in my early 30s and have a long investing career ahead of me. But for someone who was on the verge of retirement, this could have been an extremely terrible and unwelcome shock. Your risk tolerance is real—if you can't afford to lose your investments, then you should definitely be investing in less risky investments.

Kristine Thorndyke, Founder, TEFL Hero

Invest in Understandable Opportunities

The best investing advice I ever received came from my grandfather. He told me, "Never invest in something you don't understand." This has been my guiding principle ever since. It just makes sense to me.

When my sister and I started our company in 2001, this advice was front of mind. We were passionate about numbers and finance, but we also took the time to fully understand the ins and outs of bookkeeping, BAS, and payroll before offering these services. This understanding has driven our success and allowed us to grow our business across multiple cities.

For actionable advice, I'd say that before investing in any stock, business, or asset, make sure you fully understand how it works, the risks involved, why it would increase or decrease in value, and the potential returns. This reduces uncertainty and helps you make more informed, confident decisions.

Kim Maine, Chief Numbler, Numble Bookkeeping Services

Comprehend Before Investing

The most valuable investing advice I've received is that, rather than chasing trends or tips based on superficial knowledge, it's best to focus on comprehending the businesses or markets you invest in. This understanding cultivates confidence and informed decision-making, steering clear of speculative impulses driven by hype or fear. Aligning investments with your knowledge and long-term objectives, you build a portfolio grounded in sound principles rather than emotional reactions. Doing this not only mitigates risks but also positions you to identify overlooked opportunities.

Jonas Torrang, Co-founder, IsBrave.com

Invest in Personal Development

Invest 20% of everything you make exclusively in yourself at the beginning of your career so that you can retire wealthy at the end of your career.

Most investment advice is geared around long-term investments in the stock market, real estate, etc. In the vast majority of cases, you need a sizable amount of money for those efforts to yield fruit. The time horizon for a large return is usually measured in decades.

Of course, you can get lucky, but advice isn't about being lucky.

An investment in yourself can yield fruits almost immediately and touches on every aspect of your life. This goes beyond taking a few classes online.

It's about enhancing every aspect of your life. This includes working out, eating healthy, learning to dress so you're always presentable, learning rapport, learning sales, doubling down in your specific field, and so on.

If you take the 25% investment principle to heart, your income will increase, and you'll realize that you will spend more on yourself and receive compounding returns.

After a few years, you'll be a new person, and people will wonder what your secret is.

It's at that point you can start playing with long-term index fund investing, getting a few investment properties, or launching your business. You'll be a well-rounded individual who's ready to face the inevitable obstacles you'll come across.

Daniel Ndukwu, CMO and Co-founder, DoxFlowy