One of his most famous sayings is "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1. LOL!
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2 hours ago
Uncle8888,
ReplyDelete"The best thing you can do to protect against inflation is to sharpen your skills and focus on being at the top of your field. The best thing to do is invest in yourself." --- Warren Buffett, 2008.
Shareholder question during 2022's Berkshire shareholder meeting: What to invest when inflation is high?
"The best thing you can do is to be exceptionally good at something. Whatever abilities you have can't be taken away from you. They can't actually be inflated away from you. ... So the best investment by far is anything that develops yourself, and it's not taxed at all." --- Warren Buffett, 2022.
;)
Good reminder of Personal Finance 101.
1. CW,
ReplyDeleteThe irony is most Warren Buffett acolytes mimic and parrot everything EXCEPT follow Rule 1 and 2...
2. Spur,
Craftsmanship - to his shareholders.
To anyone and everyone else - low cost passive indexing.
Buffett's 2 rules is not to be taken literally. What he's referring to are 2 things:
ReplyDelete1) Losses that will make you insolvent (bankrupt) even if you're right eventually (e.g. Keynes).
[that's why he so damn averse to leverage & debt]
2) Losses that will take a very long time to recover or never recover.
Berkshire share price has sunk -23.5% in 3.5 months. The bulk of his networth (80%?) is in his company shares. That means his networth has dropped by about -$20B. He's not worried, and is looking to deploy more cash.
Smol,
Over the past 20 years, he's been telling everyone & anyone (especially his shareholders) to focus on their day jobs, which is very unlikely to be investing or trading financial instruments.
He's not licensed so he can't go around telling people to buy his company's stock lol.
Which is why when pressed for what the man in the street should invest in, his standard reply is S&P500 index fund.
In a way he's like PAP ... if everybody is hardworking & focus on real jobs and productivity, that's good for the economy. And when economy is good, that means good things for Berkshire too. ;)