Warren Buffett is one of the top 5 richest people in the world and he has got there through dedication and being smart with money. You may not have as much money as Warren Buffett or have as many zeroes behind your investments as him but you can emulate his investing style and build your own wealth in a similiar fashion that he has. Read on to learn how to invest money like Warren Buffett.

The most important step is to think of investing in stocks like a business. If you look at it as you being a part owner of a company and you investing your money into a live, breathing company you hope will make you profit, then you will do better at picking the right stocks for you and making money along with amassing great wealth.

Don't listen to what everybody tells you and don't go with the crowd. You have to do your own research and find your own information. You only need to do a few things right in life just so long as you don't make too many big mistakes. Try to keep investing simple. This is what Warren Buffett does. He doesn't go with the hottest trends, but he buys and invests in value and buys businesses that he knows about.

Increase the size of your investments. Warren Buffett believes in concentrating his portfolio and investing most of his money in his favorite companies that are great businesses to hold for the long term rather than diversifying. Why put your money into your 10th best company on your list when you can invest it all into your top 3 companies?

Don't get into the habit of actively buying and selling stocks. Invest with a long term outlook and look for companies that are good enough companies for you to own their stocks many years from now. That is why it is important to do your homework. If you do your homework and invest in stocks of companies with a excellent cash flow, little debt, and are a leader in it's industry, then you will be able to hold it's stock for many years without having to sell it. Homework is important! When you constantly buy and sell taxes, then you can't possibly maximize your profits because you will spend a good chunk of your money paying taxes. Warren Buffett minimizes his taxes by trading infrequently and holding his investments.

Step 5: Reinvest all of your dividends that the stocks you own may pay you and let that money compound and grow even faster. You will thank yourself later when your returns and wealth grow even faster.

In conclusion, these tips will help you better invest your money. Remember, to do your own thing and do your homework. Focus on great stocks that have a great business model and the money will follow. Good Luck!