Warren Buffett, CEO of Berkshire Hathaway, is regarded by many as the most successful investor in the world. While in Yahoo Finance we prepare for the live broadcast of the annual shareholder meeting conglomerate to take place on April 30, we decided to find some of the best advice given by Buffett about spending, saving and investments.
1. Read everything you can; . The sooner the better
“In 10 years, I had read all the books on investments Omaha Public Library; some twice. You need to fill your brain with conflicting ideas and decide which ones make sense. Then you have to jump into the pool, have a small amount of money and put it into practice. It’s like you were to read a novel while actually you do another most important thing. You will soon discover that you like. The sooner you start, the better “
Your favorite book. Tome 1949″ The Intelligent Investor “Benjamin Graham (translated into Spanish as intelligent investor ).
2. Credit cards are not your friends.
“If you are willing to pay 18% on your credit card, things do not go well”.
3. Invest in yourself.
“Imagine you have a car and you want to last a lifetime. Of course, you have to take good care of, change the oil more often than necessary, drive with caution, etc. Now, you think that only have a mind and a body. Prepare to face life, look after them. Over time you can improve your mind. The main asset of a person is itself, so it is necessary that each take care of preserve and improve.
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Four. To most people would be better off if it buys and sells shares
“You just have to choose among the 500 companies in the stock index Standard & amp.; Poor’s. Do not put your money all at once; do for a period of time. I recommend books by John Bogle. Anyone working with investment funds should read, because there is everything you need to know. “
” If you have invested in a fund with a rate of very low cost -in which do not put all the money at once, but on average over ten years, and you did better than 90% of those people who start investing it all at once. “
“If you like to spend between 6 and 8 hours a week to work with investments, do it. If not, place the average cost in dollars in index funds this accomplishes two very important things are achieved: diversification of assets and time “
5 Learn what you do not know …
“there is no problem with an investor who ‘knows nothing’ but is aware of it. The problem is when you ‘know nothing’ but believes that knows something. “
6. Do not follow the herd.
” you need to split your mind of what he thinks the crowd. the herd mentality causes paralysis in intelligence. I do not think investors now act smarter, beyond his intelligence. Smart is not always synonymous with rational. To succeed as an investor you should get rid of your fears and greed that dominates the people around you, but it may become impossible. “
( AP Photo / Martin Mejia)
7. Ask for a raise in the right way.
“Write down all the reasons why you think you deserve a raise. It is important to prove that you are reliable, honest and trustworthy. You should also be able to show that other people in the industry are still better paid for providing the same services. Then go to see your boss and present your case. The better prepared you are to defend your position, the more likely you are to make it successful. “
8. Look at the mistakes that others and not repeat them.
“It’s best to learn from the mistakes of others. [General George S.] Patton used to say that “it is an honor to die for our country; make sure that the enemies have that honor. ” I myself have repeated many mistakes. The largest, the highest category over time, is to have been reticent to put some money in a company that knew it was really exceptional. “
9. The work has not always been for money.
“You do the work you like, or you are not being paid for it. He works on what you like. The money already come. “
” You’re rich if you work with people you want. You earn money if you are an active and intelligent person. This partnership enables intelligent people and push living well. You will not be the exception. “
10. Communication is one of the greatest skills you can learn.
“If you increase your value by 50% with good communication skills, that translates into an extra $ 500,000 in terms of capital. Can greatly increase your value if you improve your communication, both written and oral “skills
FILE -. The image file is 20 June 2013. Some students listen to a conference astronaut Wang Yaping Chinese broadcast live from the space station Tiangong-1 still under construction, as part of a school activity in Tongxiang city, west of Zhejiang province, China. The Space Agency’s Manned China (CMSA) said on Sunday February 28, 2016 that the country is preparing the launching of its second experimental space station this year, which come two astronauts who will engage them and live to board for several days ( AP Photo , image file).
11. Let go of your emotions.
“In 97 and 98 people were not rational. People followed the trail of what others did. Do not get caught by the inertia of what others do. always go against is not the key, but always follow the masses, either. Let go of your emotions. “
12. Be aware of your reasons to invest.
“The reasoning is the only thing that will help. Something that can be useful is to write in advance why you’re going to buy a stock. He writes: ‘I will buy 300,000 million Microsoft because …’. Force yourself to write this. We will clarify things and reinforce your discipline. This exercise makes you a more rational being. “
13. Forget about your neighbor.
“I’m not interested cars and my goal is not to envy people. Do not confuse the cost of living with the standard of living “.
” Just do like us buffetts. He has always loved to live according to our means and income. In a short time you will receive much more revenue. [Children] will follow the example of their parents. You should not increase the cost of your life without improve your life. “
14. Do not spoil your children.
“I think I give enough to my children so that they can do something, but do not give them so much that they can not do anything. “
15. Choose your influences wisely.
“In my father found a great teacher of life, but there was also another great master in professional terms it was Ben Graham. I was very lucky to get the correct bases quickly. And then basically I did not hear anyone else. Every morning I look in the mirror and he’s always agree with me. I go out and do what I think I do. And I do not let myself be influenced by what others think. “
16. Sometimes spending is good too.
“There are many people that I do not advise you to save. If you already have your money in a pension plan, you enjoy Social Security and you have left something extra, why you would say that you should now renounce take your kids to Disney World and happiness that entails for later a boat of 20 or 30 feet long? “.
” Spend now has benefits. It is not always better save 10% saving 5%, although better than spending 105%. You need to live life being true to yourself. We do not encourage extreme austerity. You’re no better or worse if you live person differently than does your neighbor. “
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17. Education is everything.
“You can be better prepared to face its economic future by investing in their own education. If you study hard and learn from young, you’re in the best position to ensure your future. “
18. Learn to be worthy of esteem.
“The most powerful in the world is unconditional love. Acting as does the crowd is a terrible mistake in life. The more you try to avoid more back to you. At the individual level, it is important to ensure that you have people counting on you “.
” I can not imagine the success of someone who is not loved “.
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Do you have a favorite quote from Warren Buffett? We are all eyes and ears. yfmoneymailbag@yahoo.com
Yahoo Finance
Mandi Woodruff
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