Buying Stocks in New Companies
Warren has been buying stocks in new companies for years. He finds a company he believes in and begins buying shares in the company. As the company grows, he continues to buy more shares. This way, but the time the company is especially successful, he holds a large portion, or even a majority of the company. He first did this with the company Berkshire Hathaway, which is now a major holding company. The company itself now is specifically there for buying Warren’s investments. Not bad having a company dedicated to buying your own investments.
The Same Home
One of the largest expenses anyone has is their home. While Warren Buffet could afford a very large, very nice home (several of them) he has no need. That is why he still lives in the same home he purchased in Omaha for $31,500 in 1958. Now, this was still a good amount of money at the time, but he has not moved since as he really doesn’t have the need to go out and purchase another home. It is an example of how being wise with your money and frugal, without spending it on unnecessary things can help you in the long run.
Warren has found he doesn’t need to have multiple cars. What is the point? You can only drive one at a time. That is why he has driven the same Cadillac for the last decade. This is a major financial revelation many people need to understand. There is no need to go out and buy the latest object as soon as it comes out. Only buy something new when what you currently have costs too much to operate. Buffet also isn’t someone who goes out and buys the extremely expensive cars. He enjoys vehicles build by GM and Ford and avoids the massively expensive vehicles from other companies.
Enjoy the Vices
Everyone has a vice. Even Warren. In fact, he drinks five Cokes a day. Some might think this would be substantially negative to his health, but he offsets the calorie and sugar intake by adjusting what he eats. This way he can allow the calories from Coca Cola without having it cause him health problems. Of course, he also owns about nine percent of the company, which is nice. While you likely won’t own nine percent of a company you enjoy a product from, it doesn’t mean you shouldn’t find comfort in it. We all have our vices. As long as yours is safe in moderation, feel free to enjoy.
You don’t need to read something specifically connected to your business of choice. Warren Buffet is a book worm, but he doesn’t spend hours at a time with his nose in stock reports. Instead, he enjoys non fiction, so he often has multiple non fiction books around the office where he can be found reading when he isn’t working. This way he educates himself but not necessarily in business but simply in life.
Upgrade Only When You Need To
If what you use works and does the job, why should you upgrade? Warren Buffet feels the same, which is why he still uses a simple flip phone. Many people would laugh at his flip phone, yet warren uses it to make phone calls and that is it. There really isn’t any need to spend more money into a phone that does things he’ll never need it to do. This is a major problem other people run into. They spend money on phones with devices they either don’t need or to replace a current phone that already works fine.
Donate To Causes
Warren Buffet is a firm believer in donating money to causes he believes in. Warren is a stark believer in a woman’s right to choose, which is why he donates $100 million annually to different women’s groups around the country. These groups often struggle for money, which is why this financial donation is important. You don’t need to enter the same kind of monetary donation as Warren, but there is nothing wrong with giving to a cause you believe in.
The Rare Splurge
Occasionally you have to treat yourself. Warren is someone who typically lives by the means of any ordinary businessman or woman. He drives the same car for years. He lives in the same house he’s had for half a century. But, unlike the average businessman or woman, he owns a private jet. Of course, with all of the business he does, having a private jet is helpful. He has a single jet he is able to use for personal and business travel.
Invests in Cars
While Warren doesn’t spend his money on buying multiple vehicles at once, his money goes much further than that. He holds shares in General Motors through his Berkshire Hathaway company. He also has put money into 78 dealerships through five states and is looking to increase this monetary investment in dealerships over the next several years. As the auto industry has recovered, Warren has continued to put more and more money into it.
Know When to Invest
Warren often seems to have a sixth sense about investing, putting money into a company long before it has proven to be profitable at all. In the 1960s, American Express was struggling to stay afloat. However, Warren decided to buy his first shares of the company. He still holds a large percentage of AMEX stock, all of which he has accumulated since his initial purchase.