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Warren Buffett is the chairman and the chief executive officer of investment firm Berkshire Hathaway. He was born in Omaha, Nebraska in the United States on August 30, 1930. Buffett bought his first stock in 1941 at the age of 11. He filed his first income tax return when he was 13. He had bought a stake in a 40-acre farm in Omaha, Nebraska by the time he finished high school.
Currently, Berkshire Hathaway is the fourth largest in the world, with assets worth $819.7 billion, according to Forbes. Below are lessons learnt from Buffett during his 90th Birthday on Sunday.
1. If you’re not investing, you’re doing it wrong
Holding on to cash is a bad investment. One should not keep too much liquidity. People who hold cash equivalents today feel comfortable. They simply have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value,”said, Warren Buffett”.
2. Invest in yourself
“The most important investment you can make is in yourself.”He is always learning and always spending time on personal development. Even at the age of 90.
3. Never invest in a business you do not understand
Buffett has always invested in sectors that he believes in. When economic condition is uncertain, stick to what you know. One should always be rational and stick to homework when researching businesses in which to invest. The golden rule of Warren Buffett is that one should invest in those businesses that they understand.
4. Credit cards debt
Warren Buffett advised people to avoid using credit cards as 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 any money I have is to pay it (credit card due). It’s gonna be way better than any investment idea I have got,”said Warren”.
5. Stick to your long term plans
“Someone’s sitting in the shade today because someone planted a tree a long time ago,” Buffett said. One should always look at the long term plans while investing. Buffett’s mantra is — “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
