Last November 5, 2017, Mary Buffett arrived here in Manila hence we had another National Achievers’ Congress.
A lot fo powerful speakers came and we learned a lot from them.
They shared lessons and sold programs in the areas of Stock Investing, Internet Marketing, Real Estate Investing, Business Management, and the likes.
I am blessed to be one of the authors who were given a table outside to sell my book. It was a well attended event and my book sales benefited from it as well.
To cap the day was Mary Buffett.
She is the daughter-in-law of Warren Buffett and being that, she learned a lot from him.
Here are the 5 things she shared with us her audience about the lessons from the Buffett family:
1. Watch your Spending
Even if you are not Popeye, you would know that even a little hole can sink a great ship. Same goes with our finances. We cannot allow small, unnoticeable expenses be taken for granted. Small expenses put together creates one big mess that is hard to clean up.
It doesn’t matter if you are earning good money if you don’t take care of your expenses, you will get in trouble sooner or later. You don’t want what you have built for years of hardwork be put to waste wouldn’t you?
Warren Buffett will always think enough before spending.
Mary Buffett shared that Warren would consider how much would his money be worth in 30 years compounded, before spending. He would see if what he will be spending in would be really worth it.
Every penny counts.
2. Find a job you love
Ideally, you would like to do the things that you love so you wouldn’t have to work a day in your life ever again. However, you got to make sure that the odds are not against you when you do that.
You must play in an area where the possibility of winning is bigger. Should you choose to expand, stay in your area of competence. You have better chances of being successful.
If you are investing in the stock market, stay only in companies you understand. Do not buy companies based on the stock market. Buy the business, not the stock.
3. Do not depend on debt
Be as debt free as possible. It would be very hard for someone to go up in life if he is buried in debt.
Compounded interest can work for you or against you. Most of the time, it works against people who do not understand the concept really well.
You may think that this goes against Robert Kiyosaki’s principle of using good debt so you can leverage from it. Actually no. It’s just that this is more practical as most people get out of control when it comes to debt.
For me, this is more of having the mindset that going into debt, and depending greatly on it, is not the best practice one can have.
People go abroad to work for bigger income. However, when they get into consumer debt to pay for their lifestyle, they are having a hard time to go back home and be with their loved ones because they get succumbed to it.
Getting buried in debt is a painful lesson you would want to learn from as fast you can.
4. Risk management
Limit your downside and your upside will take care of itself. This is same as minimizing your risk.
Entrepreneurs like to take risk but they take calculated risks. So should you.
Baseball players do not swing at every pitch. They only go for the balls they think they have better chances of hitting. When trading, you got to have control and discipline for you to enter on trades with better chances of winning.
It is better to not be invested that being into a losing trade.
5. Invest like Buffett
Warren Buffett has been a fan of Value Investing ever since.
The Buffett family preaches about it as this is the concept of buying good companies that are below their market value rather than just simply trading in the stock exchange.
Mary Buffet said that we should not believe the press. Most of the time, media would like us to hear what they would like us to hear. Most of the time, it is for no good at all.
We got to do our own study and most of the time, it is about observing the businesses that we understand.
You got to have a long term perspective in your life and in your investments.
Mary Buffett is the author of Buffettology and a mentor to a lot of successful investors all over the world.
PPS. Should you want to be part fo my team of real estate professionals and insurance advisors, you may contact me here in this page.