As you grow older you start realizing the importance of many things in your life, the place you are born in, the relationships you nurture, new fashion trends for men, exercise for men and also the amount of money you should save and spend from the amount you earn! Let us see what one of the richest men on earth, Warren Buffet has to say about the money.
1. Cash is Oxygen :
Yes, according to Buffet cash to a business is as oxygen to an individual. As you never think about it when it is present, you start thinking about when it is absent. Perhaps The Berkshire Hathaway is one of the rarest companies that not only survive recessions and crashes, but mostly come out in the more robust form that it went in! Warren Buffett advices his company and everyone to always have an “emergency fund” that always will helps out in the times of unknown unforeseen environmental disasters. In the year 2008, when the markets crashed Berkshire was safely floating, thanks to their cash-on-hand that helped them to make lucrative investments that otherwise was not possible! Buffett always insists on keeping minimum cash at all times depending on your financial health – business or personal investment always have a stockpile of cash and you will be able to deal with financial challenges and opportunities life throws at you.
2. Hold it forever :
You should have a wavelength to hold it for ever. Yes, according to Buffest, invest in a most accurate opportunity that you can sustain for minimum 10 years. For Berkshire Hathaway, they say “our favorite holding period is forever”, that means they invest in opportunities having a stable, established backgrounds having solid credentials and unique propositions, and invest for long-term keeping the sharp focus on daily movements.
3. Avoid single ones :
According to Buffet avoid, investing in individual stocks and prefer index funds that balances the total investments. He advices to invest in basic, low-cost S&P 500 index fund, that generally outperform a basket of hedge funds. The simple idea is to invest with a premise of macro situation in the country, Buffet bets on the whole American business that is almost certain to be a winner over time!