Warren Buffett is to finance and investing what Michael Jordan was to basketball. He is the oracle of Omaha. The greatest living icon of the investing world. One of the great things about Buffett is that his financial philosophy comes down to common sense and hard work. It’s accessible. It makes sense. And because of that, it’s a philosophy that can be used by just about anyone. So what does Buffett advocate? Here are five basic principles:
- First of all, you should spend your money wisely, buy high quality things at valuable prices. And don’t waste money on things you don’t need.
- Second of all, you need to care about your money, because no one else is going to care about it as much as you do.
- Third, do your homework (lots of research) up front.
- Fourth, make sure to work with good people.
- Fifth, take smart, well-researched risks.
Whether you agree with his overall philosophy or not, you have to admire his career success, having become one of the richest men in the world. The following infographic takes a further look at 10 basic financial principles that Buffett has employed over his career, which can be applied by just about anyone.
Infographic provided by bestfinanceschools.net