Warren Buffett is an incredibly successful financier. He’s built his wealth long-term to surpass $76 billion, making him one of the richest men in America. Warren lives by a certain set of values that he utilizes and implements to invest and make other life changing decisions. He offers great advice that everyone can use to be successful and begin their journey to financial freedom.
High Returns with Low Risk is Important
Buffett said, “Never invest in a business you cannot understand.” The advice here is quite obvious but often ignored, particularly after investors have had some success. The temptation to believe that success in one area you know will allow you to easily understand another can get you into trouble. Even Buffett himself hasn’t invested in the technological sector for the most part, because he accepts that he has little knowledge of the sector.
Be Around Honest People
“Honesty is a very expensive gift. Don’t expect it from cheap people.”
Buffett and his partner have long worked with the same people with whom they share long histories of trust and experience with. Any good investor should do the same.
Make Long Term Investments Over Short Term Ones
Investing is not trading and they are completely different objectives. Trading is taking measured risks for certain periods of time at sufficient volume to generate profits and typically involves wild swings in profitability. Investing on the other hand is about minimizing all risks to generate wealth over the long term, not generating short-term profits. Therefore for investors, long term is always the more important time frame to work with.
Personal Development is Very Important
Warren Buffett started off with $100 and turned it into $30 billion. This proves it isn’t about what’s in your pocket, but it’s about the knowledge you have. It means there are no real barriers to you obtaining wealth if you’re willing to work hard and rigorously.
With these tips and tricks, you can start your own path to financial freedom. Get your finances in order and get on track to start investing!