Warren Buffett, one of the world’s most successful investors, turns 90 on Sunday. Buffet, the third richest man in the world, has a net worth of $ 86 billion. The president and CEO of the investment firm Berkshire Hathaway, was born in Omaha, Nebraska in the United States on August 30, 1930. Buffett bought his first shares in 1941 at the age of 11. You filed your first income tax return. when I was 13 years old. He had bought a stake in a 40-acre farm in Omaha, Nebraska when he finished high school.
Today, Berkshire Hathaway is the fourth largest in the world, with assets worth $ 819.7 billion, according to Forbes. The octogenarian billionaire investor has succeeded in ways the most unique dream of.
His most famous advice to investors is: “Rule # 1: never lose money. Rule No. 2: Never forget rule No. 1. “
Here are five investment lessons from ‘Oracle of Omaha’
“Never invest in a business you can’t understand.”
Warren Buffett’s rule of thumb is to invest in businesses they understand. Buffett has always invested in industries he believes in. When the financial situation is uncertain, stick to what you know. Always be rational and stick to the task when researching companies to invest in.
“Buy stocks the same way you would buy a house. Understand it and like it in such a way that it is content to own it in the absence of a market, “he said.
If you are not investing, you are doing it wrong
Holding onto cash is a bad investment. You should not keep too much liquidity. Investors should always look for ways to generate profits from existing assets.
“Today, people who have cash equivalents are comfortable. You should not. They have opted for a terrible long-term asset, one that pays next to nothing and is sure to depreciate in value, “Buffett said.
Stick to your long-term plans
“Someone is sitting in the shade today because someone planted a tree a long time ago,” Buffett said. You should always look at long-term plans while investing. Buffett’s mantra is: “Only buy something that you are perfectly happy to hold if the market closes for 10 years.”
As Buffett says, “Decide that a company is worth investing in because it will last, not because it is doing well right now.”
Invest in yourself
The biggest investment lesson one can learn from Warren Buffett is this: “The most important investment you can make is in yourself.” He is always learning and always dedicating time to personal development, even at the age of 90.
“I insist on spending a lot of time, almost every day, sitting and thinking. That is very rare in American business. I read and think. So I read and think more, and make fewer impulsive decisions than most people in business. “
Credit card debt:
Millennials, this is for you. Buffett has previously advised people to avoid using credit cards like a piggy bank.
“I don’t know how to make 18%. If I owe money with 18% interest, the first thing I would do with the money I have is to pay it (credit card due). It will be much better than any investment ideas you have, “he said.
“You can’t go through life borrowing money at those rates and be better off. So I encourage everyone and it is contrary to Berkshire’s interest in certain cases and in the world with love in credit cards … I would suggest to anyone that the first thing they do in life is they can get something else later , but don’t pay 12% to anyone, just pay that… “said Buffett.
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