Warren Buffett: 2 Biggest Money Mistakes People Make

October 13, 2023

This article requires an average reading time of 1 minute 46 seconds.

As perhaps the most successful and famous investor of our time, Mr Warren Buffett should know a thing or two about money managment. When he took over the management of Berkshire Hathaway in 1964 until today, the company has an average growth rate of about 18% per annum. $1,000 invested in 1964 wil be worth a staggering $6.4Million today! In comparsion, the amount if invested in an S&P index fund would have grown to about $60,000 in the same period. This speak volumes about his genius in financial management.

Let’s face it. A lot of us have a very hard time reaching our financial goals and it usually got nothing to do with bad luck. According to Mr Buffet, one of the richest men in the world, there are two simple and costly mistakes most of us make when managing our personal finances.

The first mistake:

We neglect to cultivate the habit of saving money early in life. Yes, saving is a habit that must be cultivated in most of us; it comes naturally to only a few people. But too often, we allow ourselves to fall into the trap of believing that saving can wait until we have more money to spare. This turns out to be a costly mistake as we approach middle age.

My earlier article on “How to do less and have more for retirement” illustrates this point poignantly.

The second mistake:

The second mistake that people make is trying to get rich quickly. One should understand that when it comes to building a fortune, there is really no shortcut to success. The key to wealth accumulation, according to Mr Buffett, is patience. It is usually ‘time in the market’ and not ‘timing of the market’ that creates success in investment. Many people are told that the stock market is useful only so long as you can find the next big company that will double your money in a matter of days and that the best investments are the ones that no one knows about. This is the undoing of most people who want to get rich quick in the stock market. Greed and impatience are the root causes in the failure of money management.

As Mr Buffett says, “It’s pretty easy to get well-to-do slowly, but it’s not easy to get rich quick.” Many financial instruments that promises too-good-to-be-true returns are usually what they are: too good to be true. Wise words indeed from the man who has said his favourite holding period for his stocks are “forever”, contrary to traders who can buy and sell their stock ‘investments’ in less than a day.

Insure yourself, protect others.

Yours,

Like us at our Facebook Page. Request for a Free Life Insurance Quote or Buy your Personal Car Insurance today!

Disclaimer: All information, commentary and statements of opinion contained in this publication are for general information purposes only. They are not intended to be personalized financial or investment advice as they do not take into account your individual circumstances. You are advised to speak to a qualified financial consultant before making any financial decision. This publication should also not be construed as an offer or solicitation to purchase or sell any insurance or non-insurance products including any that may be mentioned here. Whilst we have taken all reasonable efforts to ensure that the material contained in this publication is accurate and informative, InsuranceGuru.com.sg and the author of this article do not warrant or guarantee its accuracy, reliability or completeness. InsuranceGuru.com.sg, its employees, parent, related companies, agents and the author of this article will not be liable for any direct, indirect, incidental or any other type of loss or injury resulting from your use of this content.

Copyright © 2023 InsuranceGuru.com.sg All rights reserved. No part of this publication may be reproduced, stored, transmitted in any form of by any means without InsuranceGuru.com.sg’s prior written consent.

If you are seeing this article sent through your email from InsuranceGuru.com.sg, it is because you had subscribed for it at some point in the past. If you do not wish to receive such emails in the future, you can unsubscribe by clicking here to submit your request. Thank you.

The author of this article, Mr Sean Ong is a Certified Life Coach, a Master Practitioner in Neuro-Linguistic Programming and a Chartered Financial Consultant who has been featured on the local TV and radio, having begun his career in the finance industry since year 2002. In his efforts to contribute to the society, Sean ran 1,000 km over 87 days to successfully raise more than $13,000 for a children charity in year 2012. He also published a book subsequently where sales proceeds were donated to charity. Sean completed his Masters of Science Degree in Technopreneurship & Innovation in year 2020 and was honoured in the Director’s List for academic excellence. He has keen interests in InsurTech projects and mental wellness initiatives for the youths. Above all, Sean counts knowing Jesus Christ as the most significant event of his life. He can be contacted at seanong@ippfa.com.

4 Common Mistakes to Avoid in the Stock Market

This article requires an average reading time of 2 minute 11 seconds.

Wanting to be the next Warren Buffett is one thing; actually making even a fraction of the money he makes in a year is quite another. Truth be told, the biggest enemy of an investor is none other than himself. More often than not, it is no one else but yourself who prevents you from making the right investment decisions.

3 Time-Tested Investment Strategies You Must Know

This article requires an average reading time of 3 minute 7 seconds.

Looking for an investment strategy that works in any market conditions is like searching for the proverbial fountain of youth. Neither exists in reality. The financial market is subjected to too many unknown factors eg the collapse of oil prices that can hurt blue chip stocks like Keppel Corp or a sudden war (God forbids) that may take place in any part of the world; all these events will affect the performance of the stock market. Every kind of investment strategy has its limitations but what are some time-tested investment strategies out there for us to consider?

7 Secrets To Becoming Rich

This article requires an average reading time of 2 minute 37 seconds.

Many people have unlimited desires but limited financial resources to fulfill them. If you think you are one of them, then you should read “The Richest Man in Babylon” by George Samuel Clason. This book is unlike any other book on personal finance. It dispenses financial advice in a simple yet powerful way through a collection of parables set in ancient Babylon.

Here are the 7 time-tested secrets of becoming rich shared within the book:

Warren Buffett: 2 Biggest Money Mistakes People Make

The first mistake:

The second mistake:

4 Common Mistakes to Avoid in the Stock Market

3 Time-Tested Investment Strategies You Must Know

7 Secrets To Becoming Rich

BE THE FIRST TO KNOW

Contact Us

Warren Buffett: 2 Biggest Money Mistakes People Make

The first mistake:

The second mistake:

4 Common Mistakes to Avoid in the Stock Market

3 Time-Tested Investment Strategies You Must Know

7 Secrets To Becoming Rich

BE THE FIRST TO KNOW

Contact Us

Agree

Email subscribed successfully.