You could say that Warren Buffett was a born investor. He bought his first stocks at age 11, and showed a keen interest in the way investors worked at his father’s brokerage firm.
Ranked number 3 in the 2019 https://www.forbes.com/billionaires/#30e97d43251c Forbes Billionaires list, Buffett remains approachable and down-to-earth. Here are some tips for success he has shared.
1. Put your savings first
Most of us try to save whatever’s left at the end of each month. Buffett’s advice is to put aside the savings first, and then live on whatever’s left. This more disciplined approach will help grow your savings faster.
2. Live within your means
It’s all too easy to put something on credit to have it now and pay later, but a modest lifestyle can be just as enjoyable as splashing out to your limits or beyond. Despite his huge fortune, Buffett still lives in a relatively modest house, bought for just $31,000 in 1958.
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3. Make wise investment choices
Buffett looks at ideas, rather than people, when choosing where to invest. He has famously said that it’s a good move to invest in a business that’s so good, any idiot could run it, but he has also emphasised the importance of businesses having a good management team at the top. While most of us aren’t experienced enough to make the shrewd investment choices that has earned Buffett his fortune, there are experienced professionals with access to software for financial advisers such as intelliflo.com/financial-adviser-software, who can help.
4. Resist ‘trendy’ investments
Approach the ‘next hot investment idea’ with caution. Buffett shies away from investing in technology and social media, for example, because it’s not always clear whether these businesses will be as good to invest in a few years’ time.
5. Do your research before investing
Good research builds confidence in making larger investments in companies. Again, a good financial adviser equipped with the right software can help.
6. Make sure you take a job you enjoy
While it’s tempting to keep taking jobs that you might not like just to earn more money and further your career, there’s a need to balance job satisfaction and enjoyment with how much you take home. While building a financial nest egg is important, you need the capacity to enjoy it, too.
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