I think Warren Buffett is an interesting guy.
I admire him. I read a few books that were written by him or about him. I believe–at least for my long-term holdings in my portfolio–that the Intelligent Investor, written by Buffett’s mentor, Benajamin Graham, is a must-read.
Over the years, I’ve had some disagreements with Buffett, but nothing to stop me from sitting down and having steak with him.
But there’s one thing that would: paying a million dollars for that steak.
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Dreams Come True, Investing, Money, Online Investing AI
auction, benjamin graham, berkshire hathaway, charity, dinner, investors, long term investing, Money, Warren Buffett, wealth
After reading Rich Dad’s Guide to Investing In Gold and Silver
last week, I did some research and thought about the whole concept of gold and sliver. It got me thinking about the value of precious metals, and some of the ideas that we just accept about money.
Consider this. When was the last time you paid for anything with a silver coin whose value was determined by the amount of silver in the coin? The answer is probably never. Because we don’t use silver or gold coins for exchange anymore. And, the reason is quite subtle. The government has replaced these coins with fiat currency such as dollars.
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Investing, Money
books, currency, derivatives, gold, Investing, rich dad, silver, Warren Buffett
One of the simplest strategies for investing is value investing. This means buying stocks, funds or other assets when the price is low. Since this strategy works best over the long term, many value investors never sell. The most famous and successful value investor is Warren Buffett.
Although value investing is a perfectly viable investing strategy, it does have some bad points. For one, it can be slow. It takes years, or sometimes decades for markets to come down. And then, it can take years for the asset to go back up. It is possible to see the investment double in value in a matter of years, but usually it takes longer.
Another problem with this buy-and-hold strategy is that our downside is huge. During the Great Depression, the markets fell by 90%. Would you be able to hold your positions if your account went down by 90%? Most people are not aware of this, but depressions happen on average once every 80 years. It’s been exactly 80 years since the last depression. I don’t know when we will have another depression, but it is safe to say that it will happen at some point in the not too distant future.
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Automated Trading, Investing, Success
Automated Trading, buy-and-hold, Investing, Money, selling short, Success, Warren Buffett
Did you know that Warren Buffett, currently worth $37 billion, lives in the same house he bought 50 years ago for $40,000? Or that Jeff Bezos, also one of the richest men in the world, drives a Honda Accord? Why would someone who can live in any kind of house, and drive any car, be so average? Could successful investing be linked to frugal spending habits?
What is the one habit that can undermine even the most successful investor?
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Investing, Money, Success
financial future, Investing, jeff bezos, mistakes, Money, Success, Warren Buffett
This is the last post in the series. See the bottom of the post for the other nine posts.
90% of Financial Success Is Psychology
Have you ever looked at the list of the world’s wealthiest people? It seems that each person found a different way to get rich. Some people, like Bill Gates, did it by building a software business. Others did it through investing. Warren Buffett is a great example. Still others did it in different ways.
So that begs an interesting question. If there’s so many different ways of getting rich, what do they all have in common? The answer is, a certain way of thinking.
90% of financial success is determined by how you think. The remaining 10% is the specific strategies people use to get rich. Most people love to focus on strategy. They talk about who to hire, how to do marketing, or which properties are best to buy. But all of these strategies will only work if they are built on a certain mindset. And this mindset is the psychology of financial success.
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Investing, Money, Success
Bill Gates, education, financial industry, mindset, psychology, secrets, Warren Buffett, wealth
is one of my favorite financial books of all time. It's an allegory about a guy who has a terrible job, and how he overcomes challenges to achieve his dreams.
