The financial world is filled with people eager to offer investment advice. While many of these individuals are well-educated and highly-successful, this article will focus on using Warren Buffett as one’s financial adviser and mentor.
Warren Buffett currently serves as CEO of Berkshire Hathaway and is its #1 shareholder, The fact that Buffett’s net worth as of June 2015 is estimated to be $69 billion speaks for itself. In a recent interview, this financial guru explained how he has been learning and perfecting his fianncial portfolio since the tender age of 11.
For those new to the investment world, there is no better way to learn and grow than to roll back the hands of time to your childhood and investigate Buffett’s Secret Millionaires Club. This animated television series comprised of 26 episodes, now available on DVD, is geared to teaching children the ropes of financial investing. The basic premises are: learning how to make sound financial decisions and the ABC’s of starting your own business.
As an outgrowth of the aforementioned program, the year 2011/2012 saw the launch of “Learn & Earn,” consisting of finance and investment education materials including lesson plans for school classrooms and reinforcement activities for usage by parents and youth group counselors.
Here are three steps outlined by Warren Buffett for the beginning investor, regardless of age or financial worth.
Step: 1 Plan of Action
The first consideration is to envision your future life’s ultimate dream, but to bear in mind that there is a definite difference between what you actually need to exist comfortably versus what you want. Once your vision for the future is firmly planted in your mind, the next must-do is to honestly evaluate every aspect of your existence including your current financial footing and spiritual beliefs in order to realistically establish your goals.
Step:2 Institute Your Plan
Your ability to read and spending time doing it is one of your most important investment tools. In addition to reading, enroll in appropriate classes, industry blogs, webinars and podcast. By all means, take the time to apply what you learn to your current situation and your goals.
Step 3: Seriously Evaluate Your Associations
According to Buffett, the five people you spend the most time with have the greatest influence and impact on your self-image and your goals. Along with his friend Dr. Carmen Harra, a highly-esteemed psychologist and certified counselor, he advocates not licking old wounds but healing them by accenting positives and eliminating negatives.
Both of these individuals advocate that relying on your inner-self /intuition is an extremely important investment tool. As the lyrics of an old song go, “just let your conscience be your guide.”