10 Genius Things Warren Buffett Says To Do With Your Money
10 Genius Things Warren Buffett Says To Do With Your Money
Elyssa Kirkham Sun, January 15, 2023
Warren Buffett is arguably the best-known, most-respected investor of all time. Buffett is also known for his folksy charm and his memorable quotes about the art of investing.
When you're aiming to reach the top of the mountain, it's usually wise to closely follow the footprints of those who have successfully made the climb before you. Your odds of investing success can increase exponentially if you learn and apply Buffett's best investing tips.
1. Never Lose Money
One of the most popular pieces of Buffett advice is as follows: "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." If you're working from a loss, it's that much harder to get back to where you started, let alone to earn gains.
2. Get High Value at a Low Price
In the 2008 Berkshire Hathaway shareholder letter, Buffett shared another key principle: "Price is what you pay; value is what you get." Losing money can happen when you pay a price that doesn't match the value you get -- such as when you pay high interest on credit card debt or spend on items you'll rarely use.
Instead, live modestly like Buffett by looking for opportunities to get more value at a lower price. "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down," Buffett wrote.
3. Form Healthy Money Habits
In a 2007 address at the University of Florida, Buffett said, "Most behavior is habitual, and they say that the chains of habit are too light to be felt until they are too heavy to be broken." Work on building positive money habits, and breaking those that hurt your wallet.
4. Avoid Debt, Especially Credit Card Debt
Buffett built his wealth by getting interest to work for him -- instead of working to pay interest, as many Americans do. "I've seen more people fail because of liquor and leverage -- leverage being borrowed money," Buffett said in a 1991 speech at the University of Notre Dame. "You really don't need leverage in this world much. If you're smart, you're going to make a lot of money without borrowing."
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