Financial Advice from Warren Buffet
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Warren Buffet is
considered among the top 5 richest men in the world. His fortune is estimated
at around 50 billion dollars, 99% of which he intends to give to charity
after his death. With such a record from a self made billionaire, who
often gives advice to the top leaders of the world, it's well worth your time
to read some of his advice.
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On Reputation
It takes 20 years
to build a reputation and five minutes to ruin it. If you think about that,
you'll do things differently.
On his
most basic rules
Rule No.1: Never
lose money. Rule No.2: Never forget rule No.1.
On sources
of income
Never count on a
single income. Make investments to create additional sources of revenue.
On
spending
If you buy things
you don't need, you'll soon have to sell things you do need.
On saving
Don't save what
you have left after spending, but spend what you have left after saving.
On taking
risks
Never measure the
depth of a river with both legs.
On honesty
Honesty is a very
expensive thing, don't expect it from cheap people.
On
inheritance
A rich man must
leave his children enough to do anything, but not enough to do nothing.
On ideas
You do things
when the opportunities come along. I've had periods in my life when I've had
a bundle of ideas come along, and I've had long dry spells. If I get an idea
next week, I'll do something. If not, I won't do a damn thing.
On the
trickle theory
The rich are
always going to say that, you know, just give us more money and we'll go out
and spend more and then it will all trickle down to the rest of you. But that
has not worked the last 10 years, and I hope the American public is catching
on.
On
investing in the future
Someone's sitting
in the shade today because someone planted a tree a long time ago.
On Habits
Chains of habit
are too light to be felt until they are too heavy to be broken.
On
becoming rich
I always knew I
was going to be rich. I don't think I ever doubted it for a minute.
On
learning from betters
It's better to
hang out with people better than you. Pick out associates whose behavior is
better than yours and you'll drift in that direction.
On price
and value
Price is what you
pay. Value is what you get.
On taxes
for the rich
If anything,
taxes for the lower and middle class and maybe even the upper middle class
should even probably be cut further. But I think that people at the high end
- people like myself - should be paying a lot more in taxes. We have it
better than we've ever had it.
On challenges
I don't look to
jump over 7-foot bars: I look around for 1-foot bars that I can step
over.
On being
rich
Of the
billionaires I have known, money just brings out the basic traits in them. If
they were jerks before they had money, they are simply jerks with a billion
dollars.
On risk
Risk comes from
not knowing what you're doing.
On wall
street
Wall Street is
the only place that people ride to in a Rolls Royce to get advice from those
who take the subway.
On how he
invests
I never attempt
to make money on the stock market. I buy on the assumption that they could
close the market the next day and not reopen it for five years.
On
hindsight
In the business
world, the rearview mirror is always clearer than the windshield.
On ponzi
schemes
Only when the
tide goes out do you discover who's been swimming naked.
On
learning from history
If past history
was all there was to the game, the richest people would be librarians.
On healing
the economy
Economic medicine
that was previously meted out by the cupful has recently been dispensed by
the barrel. These once unthinkable dosages will almost certainly bring on
unwelcome after-effects. Their precise nature is anyone's guess, though one
likely consequence is an onslaught of inflation.
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