When 40 finance greats are asked for the best financial lessons they ever learned, you’re sure to learn something. But who wants to trawl through 40 separate pages to get to all that advice (apart from me)?
- Stocks build wealth – with no work
- Don’t follow the herd
- Do what you love
- Know where your money goes
- Shift from thinking about a paycheck to thinking about building equity and long-term wealth
- Study Warren Buffett
- Leave your money alone
- Be frugal but not stingy
- Use small bills
- Swear off debt
- To excel at something, immerse yourself
- Create your own opportunities
- Ignore the noise
- Don’t buy anything you don’t want or sell anything you ain’t got
- Money doesn’t make you happy
- Asset allocation is the most important decision investors must make
- Stay the course through thick and thin
- Don’t get too good at the wrong stuff
- Live within your means
- You can’t reliably beat the market
- Take risks when you can
- Tap the power of compounding
- You can’t fight the market, so join it
- Don’t save too much
- Buy low, sell high
- It’s hard to exploit a trend
- Know what risk you are taking
- Performance is random
- Stick with what you know
- You don’t know more than the market knows
- The less you pay, the more you keep
- The future is uncertain. Because the future is uncertain, there’s a need for caution. Try to figure out the intrinsic value of a business
- Always get it in writing
- Be humble about what you don’t know
- Develop a healthy scepticism
- Ignore short-term market swings
- Sell for the right reason
- Careful of people you trust
- It is character, not assets, that counts most
- No one has ever invented a way to get something for nothing
- Investing isn’t only about stocks and bonds but rather is a mind-set for making sense of all of the transactions a consumer engages in