HOW THE WORLD’S 3RD RICHEST MAN MADE HIS BILLIONS

Warren Buffet is probably the world’s most closely watched investor. For many investors, their strategy is quite simple in itself and that is to basically watch what Warren Buffet is doing and pretty much just do that. This could have something to do with the fact that he happens to also be one of the richest men in the world at the present point in time. At the tender old age of 84, Buffet finds himself still at the top of his game, both in a professional sense and also a philanthropic sense.

It might depend upon to whom you speak and at which exact time as to exactly how much he is worth. One thing you can be sure of is that it is a lot. At the time of writing it is somewhere around the $73 billion dollar mark. I know that this is an almost inconceivable amount of wealth for most of us to get our heads around so from here on in, let’s just say it is a lot.

“The most important thing to do is just do it. Pay no attention to the headlines in the paper or people on television. Just put aside a little money every month — put it in a very low-cost index fund,” he said, according to Bazinga.com.

Sounds very simple doesn’t it? Well, I think that is the point here from Mr Buffet. The aging multi-billionaire offered some more of his advice. “If you do that throughout your working career you’re bound to have substantial capital in the end. Don’t try to time it, don’t try to pick individual stocks, just put X dollars per month away and you’ll live a very comfortable life”.

Mr Buffet referred to the stock market as a “drunken psycho”. He says that instead of trying to pay too much attention to the stock market in terms of where exactly to put one’s money, he insists that it is better to buy across a cross-section.

“But every day I get offered through the stock market thousands of businesses, and the prices change every day, and the nice thing about it is that this imaginary person out there, Mr Market, is kind of a drunken psycho,” he said according to news.com.au.

“Some days he gets very enthused and some days he gets very depressed. And when he gets really enthused, if you happen to be trading stocks, you sell to him. And if he gets very depressed, you buy from him”.

His best advice came when talking about emotions and investing money. “There’s no moral taint attached to that,” he said. “When people get scared other people get scared, and when they get exhilarated. Emotions are contagious, and emotions have no business in investing”.