Investor Of the Week
Warren Buffett
Quite arguably the greatest investor of all time. No offense to the master investor himself. Warren
Buffett has seen it all. From depressions to meme stock bonanzas, to cryptocurrency, he has seen
it all. Year after year, he consistently beats the S&P 500 as far as market returns. Since 1965, he
has provided a whopping 3,641,613% return compared to the S&P 500 returning 30,209%. His
portfolio currently holds $315.6 billion of publicly shared companies like Apple, Bank of America,
Chevron, Coca-Cola, American Express, Kraft and his most recent, Occidental Petroleum. Every
year he writes letters at his Berkshire Hathaway meeting in Omaha, NE, where he talks about the experiences that he's
learned as an investor, as well as meeting with students every year to tell them what they can do to invest better, wiser
and smarter than the market. He is on record for saying voting in the S&P 500 would do wonders in your portfolio. Just
set it and forget it. He is literally the Michael Jordan of investing. And throughout his long life, currently at 93 years old,
he has provided gems on gems on gems. He prides himself on returning value to his shareholders, as well as being a
great business partner and long-term investor. Working side by side with Charlie Munger, he is known for taking
companies with undervalued market caps, investing in them and then reaping the returns years later. He is a big
proponent of buying and holding forever. He got started for his love of business at the age of seven when he read the
book 1000 ways to make $1000. He had many small businesses from a young age, from selling chewing gum, selling
Coca-Cola and weekly magazines door to door. He also worked at his grandfather's grocery store. In high school, he
made money delivering newspapers, selling golf balls, stamps, detailing cars and other things. By the time he finished
college, he had accumulated $9800 in savings, which equates to around $112,000 today. He entered the Walton School
of University of Pennsylvania. After he left there and graduated from the University of Nebraska at the age of 19 with a
bachelor’s in business administration, he enrolled in Columbia Business School once he found out that Benjamin
Graham taught there, another master investor. From there, the rest is history from purchasing GEICO in 1951. To
creating a partnership in 1957, and by 1962, he became a millionaire. And year after year after year, he made different
investments within Berkshire Hathaway. His accomplishments are many and wide. We wanted to talk about 10 things
that we take from Warren Buffett and how you can apply it to yourself.
1. Reinvest Your Profits
a. What you can do: Reinvest your dividends back into your stocks
2. Be willing to be different
a. What you can do: Ignore the crowd. Live below your means. Invest more and often. Remember that
the average American thinks they need $1.25M to retire comfortably but the average retirement
amount ACTUALLY saved is $87K
3. Never suck your thumb
a. Get all the information needed before you make an investment. If you are making an investment
because you saw something on twitter or from your barber, you have done enough research.
4. Spell out the deal before you start
a. Before you invest, know what you gain to lose and what you can possibly make.
5. Watch small expenses
a. Think you don’t have a lot to invest? Open up your statement and add up everything that is less than
$50 that didn’t need to be spent or didn’t bring you back any money. That amount could have been a
new stock that would have brought you 10x to your future.
6. Limit what you borrow
a. Debt free is the way to be. Avoid margin, clear credit card expenses in 30 days or less, and pay off any
outstanding debt.
7. Be persistent
a. Don’t quit. Continue investing at every chance you get. Every time you deny your current self by
delaying purchases you don’t need; you reward your future self with gains in your portfolio and
retirement.
8. Know when to quit
a. Bad habits in your life can stunt your growth and retirement. For example, assuming a smoker smokes
a pack a day, they will spend $238 a week, which amounts to $12,400 a year.
9. Assess the risks
a. It is tempting to think about all of the gains you can make on a speculative trade. But many of those do
not pan out. Before you make a trade, make sure it is a sound trade above all. Know what you are
willing to lose if the trade doesn’t go in your favor.
10. Know what success really means
a. Everybody has a different view of what success really is. Make sure you know what it is to you and work
tirelessly to reach your goal.

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Hey :) 15 Investing Things I Learned This Year

It was a great run...................

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