That leads to an important point about investing: You should never expect to make a quick buck in the stock market. Sure, it’s technically possible to buy a stock at a low, hang onto it for a few months, and cash out at a profit, but generally speaking, that’s not a great approach to investing. A better bet is to load up on stocks you believe in and then hold them for a very long time.
3. Diversify your portfolio
We may not know what all of Oprah’s stock holdings look like, but one thing we do know is that she’s more than just a talk-show host; she has her own magazine, radio channel, and acting career to boot. In other words, Oprah has a wide array of income streams, and with a diverse investment portfolio, you, too, can increase your income.
What does a diverse portfolio look like? It can mean several things. With regard to individual stocks, aim for at least 15 to 20 — more, if you’re willing to do the research. At the same time, consider buying index funds, which are passively managed funds that track existing market indexes. In fact, if your goal is to build a diverse portfolio, an S&P 500 index fund is a good place to start, because it effectively lets you invest in the 500 largest publicly trading companies. That gives you great market exposure and also takes some of the guesswork out of investing.
Read More: 4 Investing Lessons From Oprah Winfrey | Personal Finance