6 Tips For Being Rich At A Young Age In The Style Of Warren Buffett, The World's Largest Stock Investor
JAKARTA - Being rich at a young age is often considered a difficult dream to achieve, but with a precise strategy and strong discipline, it is not impossible.
Like the CEO of Berkshire Hathaway, Warren Buffett is one of the richest people in the world.
He said, one of the main keys to achieving wealth at a young age is understanding the importance of financial management from an early age.
This means having to control expenses, save consistently, and start investing.
He is the largest, most legendary and well-known stock investor in the world.
Buffet is estimated to have a net worth of USD 130 billion or IDR 1.980 trillion as of April 2024.
Warren Buffett follows certain principles that have earned him great success in the investment world.
Unlike many other top billionaires, Warren Buffett has an investment strategy based on Benjamin Graham's version of the investment method.
In other words, Warren Buffer finds and invests in stocks or securities that are much lower in price than the intrinsic value and keeps them for the long term.
Warren Buffett provides a number of tips and tips for people who want to be rich.
In particular, he recommends investing, reinvesting profits, being persistent and patient, analyzing risks, setting clear goals, and making appropriate decisions based on these goals.
In addition, Bryan Clayton and Steve Davis are a real example of how Warren Buffett has inspired people along the way to wealth.
Here are 6 tips to make you rich according to Warren Buffett, as reported by Yahoo Finance page on Wednesday (2/10/2024).
If you only have one major source of income, it doesn't make you rich quickly. If you only have one source of income, then the money runs out quickly. Warren Buffett says never relying on a source of income, always investing as a second source of income.
When discussing investment and creating other revenue streams, Buffett does not refer to investments that do not contribute to cash flows. Buffett does not refer to stocks or metals because both do not generate cash flows. He referred to assets that generate income such as business and real estate.
Buffett's other financial strategy is to invest in what is known and learn things that are unknown.
This method is successful to do. Prior to investment, it is better to learn everything he can about real estate investment and be able to use this knowledge to become rich.
"The best thing you can do is to be very expert at something," Buffett told CNBC.
"Any ability you have cannot be taken from you. This ability cannot be overestimated by you. The best investment so far is anything that develops you, and is not taxed at all." he continued.
Buffet says investing in yourself helps people a lot in building wealth.
Buffett also always has a unique perspective on the value of money. Hard work and dedication are the main ways to achieve success. Perspective changes the mindset. It makes Buffett think long-term and realize the strength of life.
Even though he is rich, Buffett is still saving on many aspects of his life. He still lives in the same house he bought in 1958. He is still shopping smartly for things like food and cars.
He also keeps things affordable in terms of hobbies and interests. Most people don't know this, but even after Buffett's fortune reached around $10 million, the man chose to remain silent at Waldorf Astoria just to save money. This savings combined with the urge to use really memorable money.