Berkshire Hathaway CEO Warren Buffett’s crucial thoughts on investing are the generous and smart pieces of advice that you need in business and life. Here are 5 key tips that the self-made billionaire shared during his shareholder meetings and some recent interviews:
Control your emotions
Back in 2009, the investing legend stressed the importance of being emotionally stable, saying “you have to have an emotional stability that will take you through almost anything.”
When the markets crash, investors panic, and this leads to many people impulsively selling off their investments. According to Buffett, the best thing investors can do, especially when the markets are volatile, is to remain calm. In his 2018 letter to shareholders, he noted that investors should possess “an ability to both disregard mob fears or enthusiasm and to focus on a few simple fundamentals.”
Marry the right person
Needless to say, Buffett’s smart investment strategies earned him fame and fortune. However, he maintains that his biggest decision in life did not involve money. During a conversation with his billionaire friend Bill Gates in 2017, Buffet emphasized the importance of marrying the right person. “You want to associate with people who are the kind of person you’d like to be. And the most important person by far in that respect is your spouse,” he said. It’s the same advice he’s been giving for several years.
He credits his first wife Susan Buffett, who passed away in 2004, and his best friend, Astrid Menks, whom he married in 2006 for shaping him into the successful man he is today.
Put your money into index funds
Buffett reiterated that buying index funds is a trusted way to establish market gains while avoiding risks. For one, index funds are affordable and aren’t fixed to the profit of one single entity.
In a 2017 interview on CNBC’s On The Money, Buffet recommended buying index funds as a practical means to bolster retirement savings. “Consistently buy an S&P 500 low-cost index fund. It’s the thing that makes the most sense practically all of the time,” he said.
Your best investment is yourself
During a 2019 interview with Yahoo Finance EIC Andy Serwer, the billionaire investor emphasized that “the best investment you can make is in yourself.” He also encouraged enhancing your communication skills in order to raise your value by at least 50 percent. The billionaire is adamant that people should nurture their minds and bodies while they’re still young.
“You get exactly one mind and one body in this world, and you can’t start taking care of it when you’re 50. By that time, you’ll rust it out if you haven’t done anything,” Buffet said.
Success is not measured by wealth
Warren Buffet is one of the wealthiest people in the world, but for him, money isn’t everything. He takes pride in the love and support he gets from those closest to him. Put simply: success is measured by the relationships in your life.
“Being given unconditional love is the greatest benefit you can ever get,” Buffett told MBA and HBA students in a 2008 discussion. He also added that if you share your love, you will receive it “twice as much, but if you try to hold onto it, it disappears.”