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Warren Buffett Says there are three ways to go broke: ‘liquor, ladies and leverage’

Warren Edward Buffett is one of the world’s top stock investor and a philanthropist. If you look for 3 keywords to describe Warren Buffett that would be a businessman, an investor, and a philanthropist. To add to the three highlights, he is one of the richest man in the world.

Warren Buffett often gives valuable advises. Be it a warning against Bitcoin or an advice about how to successfully do the business, Warren Buffett is highly respected for his opinions across all business circles.

Recently, in an interview with CNBC, Warren said; investors should avoid using borrowed money to buy stocks at all cost.

“It is crazy in my view to borrow money on securities,” he told CNBC on Monday. “It’s insane to risk what you have and need for something you don’t really need. … You will not be way happier if you double your net worth.”

“My partner Charlie says there is only three ways a smart person can go broke: liquor, ladies and leverage,” he said. “Now the truth is — the first two he just added because they started with L — it’s leverage.”

“Berkshire, itself, provides some vivid examples of how price randomness in the short term can obscure long-term growth in value. For the last 53 years, the company has built value by reinvesting its earnings and letting compound interest work its magic. Year by year, we have moved forward. Yet Berkshire shares have suffered four truly major dips,” he wrote.

Also See: Warren Buffett shares his top 10 rules for success