“Conversation Starter Lesson Series: Upper-Intermediate” is designed for intermediate-level ESL learners who want to improve their fluency and confidence in speaking English.
Each lesson includes an engaging reading material with audio, vocabulary and expressions, comprehension questions, and discussion questions to be used for one to one class, group class, or self-study for both online and offline classes.
Unit 7: Money and Finance
Story 04: Warren Buffet’s Timeless Tips for Successful Investing
Key Lesson Vocabulary & Expressions: Look over and review before proceeding.
- Oracle
- Legendary figure
- Informed decisions
- Short-term market fluctuations
- Long-term prospects
- Value investing
- Undervalued by the market
- Outperform the market
- Pitfalls of market timing
- Impulsive decisions
Read or Listen to the following passage:
Warren Buffett, widely known as the Oracle of Omaha, is one of the world’s most successful investors. With a net worth of over $100 billion, he is considered a legendary figure in the world of finance. Over the years, Buffett has shared numerous tips and suggestions for successful investing, which have become the guiding principles for many investors.
One of Buffett’s most important tips is to invest in what you know. He believes that investors should only invest in companies whose business they understand. By doing so, investors can make informed decisions based on their understanding of the company’s products, services, and industry. Buffett’s Berkshire Hathaway, for example, has invested heavily in companies like Coca-Cola and American Express, which are businesses he understands well.
Another key tip from Buffett is to focus on the long-term. He is a strong believer in buying and holding good quality stocks for the long haul. He emphasizes that investors should not be swayed by short-term market fluctuations but should instead focus on the long-term prospects of the company. This philosophy has served him well over the years, as he has held on to some of his investments for decades, and seen their values grow significantly.
Buffett also stresses the importance of value investing. He looks for companies that are undervalued by the market but have strong fundamentals. By doing so, he can buy these stocks at a discount and hold them until their true value is realized. This strategy has been the cornerstone of his investing success and has helped him consistently outperform the market.
Furthermore, Buffett advises against trying to time the market. He believes that it’s impossible to predict short-term market movements and that investors should focus on buying good quality companies at attractive prices. By doing so, investors can avoid the pitfalls of market timing and achieve steady long-term growth.
Lastly, Buffett encourages investors to be patient and disciplined. He advises against making impulsive decisions based on emotions, such as fear or greed. Instead, he suggests that investors should stick to their investment plan and be patient as they wait for their investments to grow.
Comprehension Questions:
- Who is Warren Buffett and why is he famous?
- What is Buffett’s advice on investing in companies?
- How does Buffett approach short-term market fluctuations?
- What is value investing and how does Buffett use it in his investment strategy?
- What qualities does Buffett suggest investors should have to be successful?
Conversations Starters:
- Do you think Warren Buffett’s success as an investor makes him a legendary figure in the world of finance?
- How important do you think it is to make informed decisions when it comes to investing in the stock market?
- Do you prefer to invest for the long-term or the short-term? Why?
- Can you share an example of a stock that you believe is undervalued by the market and why?
- What are some tips you have for avoiding the pitfalls of market timing in your investments?
- Have you ever made an impulsive decision when it comes to investing in the stock market? What happened?
- How do you typically determine the long-term prospects of a company before making an investment?
- In your opinion, is value investing a more effective strategy than growth investing? Why or why not?
- How do you deal with short-term market fluctuations and volatility in your investment portfolio?
- Do you think it’s possible for the average person to outperform the market with their investments, or is that a feat reserved for experts like Warren Buffett?
