Warren Edward Buffett, the 3rd richest man in the world, losing out to Mexican tycoon Carlos Slim Helu and Bill Gates may not be the richest but this man certainly has a lot of advice he can give to our young investors and young people about business. People call him the “Sage of Omaha”
- As a kid, Buffett would go door-to-door selling chewing gum and Coke. He would buy six bottles for a quarter, and then sell them for a nickel each. He made a trip to the NYSE (New York Stock Exchange) and he bought his first share at age 11 from a company called “Cities Service” and now he regrets that it’s too late!
His advice: Encourage young people to invest especially children. This is his advice for people who want to invest according to a recent interview by CNBC:
Some of his fundamental tenets for investing are:
- Patience pays: buy ‘em and hold ‘em.
- Invest in businesses you understand.
- Look for businesses with “durable competitive advantage”.
- Look for honest, able management.
- Buy at a reasonable price. At the age of 14, he bought a small farm with savings from delivering newspapers and he accumulated more money than he could wish for when he finished college. Some sources say about $90 000 in 2009 dollars.
His Advice: There are lots of things you can buy with a few savings. But it’s best to invest it in some form of business.
- You think with a net worth of $47 billion dollars, he would be living in the most expensive house in the world. He still lives in the same house he lived in over 50years ago. It’s a 3 bedroom house in Omaha. He said he has everything he needs in that house. It does not have a wall or fence.
In short, Warren is a frugal man and he is always a believer of getting what you NEED.
- To add on, he drives his own car and does not have a driver nor security around him. He never travels by private jet, although he owns NetJets, the world’s largest private company.
His advice: Always learn how to do things economically. As it was once said, “Buffett’s frugality is legendary. Sure, he built his wealth through shrewd investments, but he kept his wealth through thrift. Buffett is a reminder that frugality is not a dirty word.”
5. His company Berkshire Hathaway, owns 63 companies.
Warren writes only one letter to each CEO of the companies each year, giving them goals for the year. He never holds meetings or calls them on a regular basis.
His advice: Assign the right people to do the right jobs.
6. His advice to young people is this:
“Stay away from credit cards and bank loans and invest in yourself and remember that..”
- Money doesn’t create man but it is the man who created the money
- Live your life as simple as possible
- Don’t do what others say – listen to them but do what you feel good doing.
- Don’t follow brand names, just wear what you feel comfortable
- Don’t waste your money on unnecessary things; rather spend it on things you really need.
- After all, it’s your life so why allow others to rule your life?
Bill Gates, once the world’s richest man met him for the first time a couple of years ago. He did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only half an hour. But when Bill Gates met him, the meeting lasted for 10 hours and he became a devotee of Warren Buffet.
Warren Buffet has certainly be an inspiration to many young and old alike. These are just some of the many lessons we can learn from him as an entrepreneur.