Preparing Early
Warren Buffett is a student of investing. Says Buffett: “I read every book that the Omaha Public Library had about investing by the time I was eleven.”
Best Advice
Buffett observes that there are three major causes of financial calamity:
- Job loss.
- Major health issues that are expensive to treat.
- Credit card debt.
The first two are largely beyond your control, but the third is not. So avoid credit cards.
Getting Started
Buffett made his first investment in a publicly traded company when he was eleven years old. The company was City Service Preferred. He bought at $38.25 per share. His older sister bought some because she wanted to ride the wave of her brother’s research.
His sister taunted him when the share price went down to $27/share. When the price rose to $40, they both sold because the ride had been stressful.
Later the price rose to $210. So at a very tender age, Buffett learned his first lesson about moving too soon. Enjoy the video.