Retire Wealthy by Taking Warren Buffett’s Advice

Warren Buffett built his fortune by applying the value-investing strategy. You can be wealthy by investing in Suncor Energy Inc. (TSX:SU)(NYSE:SU) and Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR). These are the Canadian value stocks Buffett owns in his stock portfolio.

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Do you dream of building a fortune and retiring wealthy? If yes, what you can do is follow the advice of the most influential investor in contemporary times. If you succeed, you won’t have to struggle with money for the rest of your life.

Warren Buffett, the Harvard Business School reject, became a millionaire at age 30. He bought his first-ever stock at age 11. The kid knew that the oil service company was undervalued. He was confident he would make money from the equity.

After a few weeks, the stock lost one-third of its value. Buffett waited for the stock to rebound. When the price climbed to $40, he sold his shares to make a $2 profit per share. Regretfully, the price soared to $200 later on.

Time your investments

You can learn two basic fundamentals from Buffett’s first investment: patience and timing. Both his timing and forecast were correct. His patience earned him a profit. However, he didn’t wait long enough to realize the stock’s full profit potential. He found out that you have to “let profits run” to earn a more significant profit.

He almost committed the same mistake when he sold his shares at Suncor (TSX:SU)(NYSE:SU) in 2016. Buffett’s value-investing strategy doesn’t involve just the financial figures. He focuses on a company’s management team and a competitive advantage. And Buffett saw those in Suncor.

Hence, in 2018, Buffett decided to reinvest in Suncor. As of June 30, 2019, Buffett’s conglomerate Berkshire Hathaway has US$302.5 million worth of Suncor shares.

Suncor is a safe energy stock you can own. You can draw sustained passive income from the 4.4% dividend yield for years. Buffett will surely hold on to Suncor indefinitely because the company has a long runway for growth.

Focus on track record

Warren Buffett is not particular about dividends. The value investor also looks for companies with excellent track records of bringing good returns to shareholders. He sees that potential to deliver in Restaurant Brands International (TSX:QSR)(NYSE:QSR), or RBI.

The legendary investor believes the owner and operator of Tim Hortons, Burger King, and Popeyes brands have strong growth potential. It will come from its global expansion, which will eventually lead to a significant market share in the quick-service food industry.

Buffett considers RBI as a prosperous business enterprise with a focus on long-term growth. This $25.7 billion fast-food chain is under the able stewardship of Brazilian investment firm 3G and Berkshire Hathaway, the company’s two largest investors.

RBI’s international system-wide sales growth is unprecedented. Burger King has 10,000 stores globally and is growing. Tim Hortons partnered with Beyond Meat to introduce plant-based meat substitutes to the menu. Popeyes will be rolling out more locations. Overall, RBI’s pillars of growth are delivering.

Invest in value stocks

If you follow Buffett’s value investing approach, you can retire wealthy. By investing in Suncor and Restaurant Brands or other quality stocks selling below their real worth, your future net worth could be enormous.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of Berkshire Hathaway (B shares) and RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short October 2019 $82 calls on RESTAURANT BRANDS INTERNATIONAL INC, short January 2021 $200 puts on Berkshire Hathaway (B shares), and long January 2021 $200 calls on Berkshire Hathaway (B shares).

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