Berkshire Hathaway US investor and CEO Warren Buffett will give much of his “popular, funny and dangerous” advice on Sunday.
Longtime business partner Charlie Munger will join billionaire Warren Buffett tomorrow as he shares more of their wisdom at the 2021 Berkshire Hathaway shareholders’ meeting.
Like last year, shareholders will not attend the event in person due to the COVID-19 pandemic, but investors from around the world can watch the event live.
The net worth of the famous American businessman Warren Buffett, nicknamed “risk investor”, at the age of 91, is estimated at $ 124.3 billion, according to Forbes’ list of the world’s richest people in the world in 2022.
Yahoo Finance reviewed and extracted some of Buffett’s best jokes, tips, and sayings, which came as follows:
1. Do not be afraid
“Fear is the most contagious disease you can imagine,” the council said at the 2020 shareholders’ meeting.
2. Learn the language of accounting
“You have to understand accounting, and it’s like language to you,” Buffett said in an interview with Yahoo Finance editor-in-chief Andy Seruer last year.
3. Do not be in a hurry to sell
“The wooden period for our preference shares is forever,” Berkshire Hathaway’s CEO wrote in a 1988 statement to shareholders. “Unlike those who are in a hurry to sell and take profits when companies are doing well, we stick to businesses that disappoint.” Peter Lynch compares this behavior to cutting flowers and watering weeds.
4. Invest in what you believe in
In a 1989 letter to shareholders, Buffett said, “It’s much better to buy a great company at a fair price than to buy a company at a good price.”
5. Price and value are not always the same: do not pay too much
Buffett’s advice came in the wake of the global financial crisis, where he noted that price is what you pay, and value is what you get.
6. Reputation is everything
Buffett testified before Congress in 1991, referring to the kind of mistakes corporate directors can deal with, saying, “I’ll lose some company money, and I’ll understand; if I lose a jot of the company’s reputation , I’m going to be difficult. ”
7. Be skeptical
In an October 2008 New York Times article, Buffett wrote, “You have to be skeptical if something sounds too good to be true.”
“There’s a simple rule in my buying decisions: Be afraid when others are greedy, and be greedy when others are scared.”
8. Do not invest in something you do not understand
“The important thing is to know what you know and to know what you do not know.”
9. Do not enter into an agreement with someone you do not trust
When making a deal, Buffett advises knowing and trusting the person sitting across from you at the negotiating table. “You can not make a good deal with a bad person,” Buffett told CNBC in 2019.
10. Price drops are an opportunity to increase your positions
In line with the global financial crisis, Buffett said in his 2008 shareholder letter: “Whether we’re talking about socks or stocks, I like to buy quality goods when there are deals and discounts on prices.”
11. Put your money in index funds instead of individual stocks
Shortly before the outbreak of the coronavirus, Buffett told a shareholders’ meeting: “My advice, for most people, is that the best thing to do is to own the S&P 500 Index Fund documents, there are large sums that people pay for advice they give. not really needed. “
It is noteworthy that the S&P index rose from 2,300 points in March 2020 to 4,180 points, with a growth rate of almost 90%, which closed last Friday at the highest historical level for the index.
12. Use a bucket, not a spoon
“In every decade or a certain period, dark clouds fill the atmosphere of the economy, and it rains gold for a short period of time.” .. You should not miss the opportunity or miss the big profits with poor investments.
13. Take advantage while you can.
“Do not miss something attractive today, because you think you will find something better tomorrow.”
14. Stay calm
“The smarter the market behavior, the greater the opportunity for a business-like investor.”
15. Read and think a lot
Buffett spends most of his day, about 80%, reading and thinking. According to Buffett, “The best way to think about investing is to be in a room with no one else around and just think. If it does not work, then nothing else,” he said in a 1998 undergraduate reading said.
16. Knowledge is worth more than intelligence
Contrary to popular belief that business requires great intelligence, Buffett argues that “what we do is not beyond anyone else’s purpose. I feel the same about managing what I do about investing: it’s not just about extraordinary things. to do to become extraordinary. results. ”
17. Follow the rules
Buffett establishes two investment rules that he sticks to most of the time, “Rule # 1: Never lose money. Rule # 2: Do not forget Rule # 1”, this may not always be the case, Buffett already has many times lost, but he rarely lost. Easy.
18. Be frugal
In addition to his private jet, Buffett is known for his quiet and ordinary life, having lived in the same house since 1958.
Buffett explained the rationale for thrift by saying, “I have everything I want. I have many friends who have many possessions. But in some cases, I feel it is the property that owns it, not the other way around.”
19. Keep that in mind!
Buffett spoke at the 2019 shareholders’ meeting, emphasizing that “in the search for directors, CEOs are not looking for bulls … but a cocker spaniel being taken home.”
20. You are your best asset
“Your best investment is yourself. There is nothing that can compare to it.”