In the bleak financial environment that we find ourselves, one might ask how to make money, or at the very least stay afloat. Warren Buffett is a financial legend, but for opposing yet parallel reasons. On the one hand, his personal wealth puts him as one of the richest people in the world. On the other hand, he still lives in the house he bought for $31,500 in 1958. From Newsweek, we get some insight into what Warren Buffett might do if he were us.
- First of all is a piece of obvious but overlooked advice: invest in good, solid companies. Look for recognizable brand name, a good manager, low debt, and high cash reserves.
- Invest in Asia. Their deep reserves are weathering this crisis well and will make waves when their liquidity is released.
- Keep the long term in mind. Look three to five years in the future before expecting returns on any particular investment.
- Don’t let money consume you. Have a hobby, visit friends, or do whatever that takes your mind off of your troubles.
- Finally, let Warren invest for you. Buffett’s company, Berkshire Hathaway, is a publically traded company. Buy shares and let Warren’s company do all the thinking and investing. Berkshire Hathaway’s stock is up 17% in the last month alone.
