[INFOGRAPHIC] 10 Financial Lessons We Can Learn from Warren Buffett
Financial literacy—the ability to manage your money for long-term prosperity and well-being—is a key skill that people must learn. In Australia, the government encourages this type of education through the National Financial Literacy Strategy. One area of financial literacy that is still underserved however is investment in the stock market.
Many of us are already doing it, and doing it right. However, many more of us are not doing it at all or are doing it poorly. For the former, we’re not maximizing our money’s potential and for the latter we are experiencing frustration. This would be different if more successful investors shared their wisdom about how to invest wisely. However, many of these individuals feel like their wisdom is too hard-earned and would rather keep it private. Not everyone, however. One world-renown investor who is known for sharing his knowledge is the American Warren Buffett, also known as the Oracle of Omaha.
In the infographic below, some of Buffett’s most valuable financial lessons are artfully laid out by designer Jeff Desjardins.
When it comes to investing in the stock market, one of Buffett’s cardinal rules is to own your investment. Not just put your money in it, hope it climbs in price and walk away until you can make a profit of it. No, instead invest and think of yourself as an owner of the company.
The visual aid also tackles Buffett’s beliefs about risk-taking. It turns out that, despite our affinity for adventure movies, in general, Homo sapiens is averse to risk-taking. Many of us invest in bonds, banks and gold instead of stock because we think they’re safe. Buffett however, thinks that stocks outperform all of these and are safer too.
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