Jeff Bezos, founder, chairman, CEO, and president of Amazon is the richest man in the world. In a meeting with Warren Buffett, he asked America’s most prolific investor, your investment thesis is so simple. You’re the second richest guy in the world, and it’s so simple. Why doesn’t everyone just copy you?”
Warren Buffett responded to Jeff by saying, “Because nobody wants to get rich slow.”
This answer by Warren Buffett has a lot of learning and lessons for those who want to make money, become prosperous and live a good life.
Even though there is a debate about Warren Buffett starting his investment portfolio with 6k USD when he was only 15, the nag of making money with money is an art. Money is useless if you do not know how to put it to use and Buffett surely knew what he was doing. He was always calculated, moved forward with minimum risks, and was able to hold on to the stocks he bought over a long period of time. This requires patience, pursuance, and a solid temperament in the short as well as in the long run.
Buffett has often given valuable advice to young entrepreneurs about doing a successful business, stock, and life. He says there are three ways to go broke: ‘liquor, ladies and leverage’, if you can avoid this, you can be on your way to saving money and eventually making more money if you invest smartly.
Warren Buffett has been against borrowing loans all his life. According to him if you get into debt of ten thousand dollars, it is hard to get out of it and requires a huge push.
From his financial journey here are the two takeaways everybody needs to learn from the financial maestro.
1. Save, Save, and Save:
In an interview on television last year, on saving, Buffett said:
One mistake is not learning the habits of saving properly early in your life. Because saving is a habit,”
Another big mistake is trying to get rich quick.
2. When A Stock Price Falls, Don’t Sell:
What? Why would he give the advice to lose more money?. According to him, investors who sell their stocks when a stock price goes down deprive themselves of any chance of recovering their money whenever the price of the stock goes high.