Warren Buffett once said you only have to do 'very few things right' in life, as long as you don't do too many wrong things — 3 investing mistakes that can put your retirement at serious risk

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has amassed over $142 billion in personal wealth — and the Oracle of Omaha attributes a significant portion of his success to his skill in avoiding losses.

Warren Buffett has consistently advocated for a long-term investment approach, which is likely why his investment strategies have resonated with millions of people.

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He once said that all you need to do is get a few things right in life, but make sure you don't mess up too many things.

With that in mind, here are three investment mistakes Buffett says you should avoid in order to secure your fortune for the long-term.

1. Speculating instead of investing

Some investors fail to recognize the distinction between a speculative asset and a worthwhile investment. As Buffett puts it, the difference lies in how the asset produces a return.

Any investment involves spending money now in the hopes of earning more money in the future," Buffett explained. "There are two ways to think about getting that money back. One is from what the asset itself generates. That's investing. The other is from what someone else will pay you for it later, regardless of what the asset produces. I call that speculation.

Buffett thinks that investments that generate income on their own, like farmland, successful businesses, dividend-paying stocks, and real estate investment trusts, are worth considering.

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2. Attempting to predict and invest at the optimal time in the market.

Investing at the right time can be a tempting idea, but it's actually a deceptive one. Many investors tell themselves they can wait until the perfect moment to buy or sell a stock. Nevertheless, seasoned investors know that market trends are hard to predict, so sticking with a long-term investment plan is usually the way to go.

"Unless you're prepared to hold onto them for a very long time and you're financially and mentally ready for it, you shouldn't buy stocks," Buffett said during Berkshire Hathaway's annual meeting in 2020.

When investing for retirement, it's essential to select the appropriate stocks. Additionally, you should plan carefully to achieve your short-term objectives without having to withdraw from your investment portfolio.

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3. Hedging against volatility

Historically, real estate has been less of a gamble than stocks, providing steady returns that generate a consistent flow of passive income. It's often considered one of the best ways to build wealth - a move that can lead to a very successful retirement.

However, with housing prices having risen steadily over the past few years, owning a home might be becoming increasingly difficult.

It doesn't mean you can't tap into the $30 trillion home equity market, with real estate crowdfunding companies that allow you to invest in residential properties without having to constantly worry about mortgage or home maintenance expenses.

You can get your foot in the door to invest in real estate without having to purchase a property outright.

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A recent report from Cushman & Wakefield noted, "for the first time in years, the retail market is reaching a point of supply constraint — at least for space in high-end shopping centers."

With both commercial and residential markets facing supply shortages, rental prices may rise, making them a more attractive investment opportunity.

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Another option for diversifying your investments outside of the stock market (and protecting your retirement savings) is to invest in private real estate funds, such as those offered by DLP Capital.

Provides tax-advantaged, private real estate investment trusts (REITs) to accredited investors through different investment funds, which mainly focus on buying or building safe, affordable rental homes for working families in the United States.

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With over $5.2 billion in assets under management, DLP Capital enables investors to take advantage of the long-term value of real estate.

Diversifying a portfolio and potentially reducing a tax burden.

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This article is for informational purposes only and should not be taken as advice. It is provided without any guarantee of any kind.