At the age of 13, Warren Buffett filed his first income tax return. By the time he finished high school, he had purchased a 40-acre farm in Omaha, Nebraska.
Warren Buffett, the world’s fifth-richest man, turns 95 this Sunday. Known as one of the most successful investors, Buffett was born on August 30, 1930, in Omaha, Nebraska, in the United States. Buffett, the octogenarian billionaire and the chairman and chief executive officer of investment firm Berkshire Hathaway, bought his first stock in 1941 at the age of just 11. At the age of 13, he filed his first income tax return. By the time he finished high school, he had purchased a 40-acre farm in Omaha, Nebraska. According to Forbes, Buffett has a net worth of approximately USD 148.2 billion.
The following are the five top pieces of advice from Buffett for those who aspire to be investors and make a fortune for themselves:
1. Don’t Invest In A Business That You Don’t Understand
According to Buffett, one should only invest in a business he/she is aware of and have some idea about the nitty-gritty involved with the particular business. He suggests people be rational while making investments.
2. If One Is Not Investing, It’s A Bad Decision
Holding cash is something Buffett does not seem to be a very big fan of. He tells people not to hold too much liquidity, and investors should look for ways to generate returns from the assets they possess.
3. Keep Your Long-Term Plans Ready, Stick To Them
Buffett suggests investors consider their long-term plan before making an investment. He says, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”
4. Make Investment In Yourself
According to Buffett, the most important investment is the one we make for ourselves. He suggests that individuals continuously learn and make time for personal improvement.
5. Manage Credit Card Debt
One piece of advice from Buffett that is crucial for millennials is that people should avoid using credit cards like their piggy banks. Buffett suggests that before doing anything else in life, pay off any debt with high interest, like 12 per cent, first.