On August 30th 2020, Warren Buffett, the Oracle of Omaha, turns 90. Every investor knows Warren. He’s the CEO and Chairman of Berkshire Hathaway, a philanthropist, and a business tycoon. Popularly regarded as one of the most successful investors globally, he’s worth $79 billion and ranks at the position of the seventh wealthiest person in the world.
If that doesn’t impress you, we don’t know what will!
We, for one, are floored by the wealth of knowledge this man possesses concerning investments. And that’s why we’ve rounded up a few golden tips straight from Warren and listed them here for you. Check them out.
Be debt free
If you want to be wealthy as Warren Buffett, you must take a stand with him. In 2004, a 13-year-old boy asked Buffett to give him some piece of advice. The man replied that his advice would be not to get into debt. He further said that spending more than what you earn is tempting and very understandable, but it’s a bad idea. So, if you’re planning to start your investment journey, first settle all your debts and then step in.
Read – Warren Buffett – Age, Quotes & Facts
Put your money into index funds
You can start with index funds. In 2020, during Buffett’s annual meeting, he remarked that, based on his perspective, the best thing to do was having the S&P 500 index funds. This came as a surprise because he himself didn’t build his empire on index funds (he started with buying the shares of individual companies). But to validate his advice, he revealed that his trustee had invested 90% of his wife’s inheritance into index funds on his directions.
Read – Best index funds in August 2020
Don’t invest all your money
You probably think that you need a lot of money for you to be as wealthy as Warren Buffett, right? Well yes, you do need money, but not all of it should be used up in investing. In 2014, Buffet said that at least $20 billion is set aside from his wealth as an emergency fund for his company. You should also have an emergency fund if you want to stay in investments for the long term.
Seek knowledge
Lao Tzu once said – those who know, don’t predict, and those who predict, don’t know. As a novice in investing, you may think the field is based on predictions, but that’s not entirely true. You have to learn about the market and its drive. You have to learn how to be a good and disciplined investor. In 2007, Buffett said that he would read every investment book in the Omaha public library when he was ten. Learning arms you to take up any challenge.
The bottom line
Warren Buffett is the idol of all beginner investors. If you’re looking for some investment tips, you should take this man’s words to your heart.
