Warren Buffett, the CEO of Berkshire Hathaway, is now unanimously identified as the 7th richest man in the world. He is not only a greatly successful business tycoon, with 70 years of experience under his belt, but he is an equally active philanthropist.
Buffett’s Financial Advice;
Considering the reputation of Warren Buffett as the Oracle of Omaha, and his very lucrative investment decisions, we have gathered his precious pieces of advice for all new and experienced investors.
1. Investing in an Index fund
Warren Buffett believes in the reliability of Index funds like the S&P 500 and Russell 2000. He has ordained his trustee, that his wife’s share of inheritance be 90% invested in index funds, with only 10% apportioned to short-term government bonds.
2. Shed off the debt weight
He is a strong antagonist of surmounting debts. According to Warren Buffett, one should successfully write off his debt before entering the realm of investment income. He suggests that once a person frees himself from the chains of debt, he should remain that way.
3. Have some money in savings
Warren Buffet advises all the professional and novice investors to have some money onshore in the form of savings. These savings can act as your emergency fund to meet unexpected expenses. It also allows you the flexibility to take advantage of sudden changes in trends in the market which may offer lucrative investment opportunities.
4. Read, read, read your way to riches.
Warren Buffet declares this to be the secret of his success. He was an avid reader from the very beginning, and he asks every investor to share the same passion for studying. He insists that you thoroughly study the company portfolio you have invested into, or you are contemplating investing in. He advises to read about the economic conditions of the country, and the list goes on.
The Bottom Line
Warren Buffet, a booming philanthropist and businessman, has years of experience and success to his name, to lend accountability to his advice. If you are a new or a seasoned investor, there is nothing wrong with following in the footsteps of a true professional. The rest you can learn by reading: read about new zones of investment and new emerging trends in the market.