JAKARTA, The Shiro Copr - Warren Buffett is known as a shrewd investor and one of the richest people in the world. Buffett has impressively amassed his wealth through astute investment decisions.
Buffett's wisdom and long-term vision have played a crucial role in guiding many people towards financial success with the goal of saving and investing.
Young people should not hesitate to study the advice and wise investment principles from Buffett to efficiently achieve financial freedom.
Here are some tips for building wealth for young people from Warren Buffett that you can apply in your daily life, as quoted from Nasdaq , Tuesday (6/3/2025).
1. The more you invest now, the more wealth you will have in the future.
Start collecting wealth as soon as possible by investing your money wisely.
Prinsip ini berasal dari konsep compounding , which Buffett says is key to his wealth. Compounding involves earning profits on your investments, leading to exponential growth in the long term.
The earlier you start investing, whether in the stock market or real estate, the more time you give your investments to grow, which results in significant growth.
Buffett's emphasis on understanding the time value is extremely important. According to him, if you invest early, you can achieve extraordinary results in the future.
2. Financial literacy is very important.
Buffett emphasizes the importance of understanding the principles of accounting and financial literacy in general.
In the business world, these principles provide valuable insights into the value and progress of the company. This is an important starting point for evaluating the business.
If you have a low risk tolerance, you should not start directly with stocks. You can gradually begin investing while educating yourself about best practices and other investment strategies.
3. Choose investments wisely
Buffett's approach to investing involves extensive research on potential stocks, but he only selects a few to invest in.
Philosophy is very selective when choosing places to invest capital.
Even though Buffett's portfolio may not be as diversified as other billionaires, you cannot deny the results of his investments.
Munger, Buffett's business partner, is also no less impressive in terms of investing. Munger is famous for believing that you make money by waiting.
He said, "If you skillfully follow the multidisciplinary path, you will never want to go back. It's like cutting off your own hand. Spend each day trying to be a little wiser than when you woke up."
4. Surround yourself with successful people.
Buffett believes in the power of influence. He advises young people to surround themselves with people who embody the qualities they aspire to.
I emphasize the impact of a partner on one's life and aspirations.
In a discussion in 2017 with Bill and Melinda Gates at Columbia University, Buffett said, "You need to hang out with people who are the type of people you want to be. You will move in that direction. And the most important person to date in that regard is your spouse."
Seeking a financial mentor is also on Buffett's list of recommendations for millennial investors, and he emphasizes the importance of having a mentor throughout your financial journey.
Buffett studied economics and finance in college and worked with Benjamin Graham, who greatly influenced his investment principles.
5. Get-rich-quick schemes are short-term frauds.
The millennial generation has gone through many difficult economic times, and it seems there is always another financial problem on the horizon. However, in addition to this, Buffett advises not to be tempted by get-rich-quick schemes.
She has a skeptical view of cryptocurrencies, expressing concerns about their value and stability due to long-term growth being far more stable than short-term trends.
Following these principles can help you successfully navigate your financial decisions.
According to Buffett, the path to wealth is not a sprint but a marathon that requires patience, discipline, and making the right decisions.
Rather than seeking short-term profits, Buffett suggests investing in proven and reliable companies instead of risky and untested ones.
She personally holds shares in well-known companies like Coca-Cola, Johnson & Johnson, and Procter & Gamble.
6. Aggressively capitalize on opportunities
The main point is that Buffett urges young people to seize opportunities when they arise. His philosophy is that when opportunities present themselves, it's important to take them fully rather than being overly cautious.
Buffett is known for his saying, "Opportunities are rare. When it rains gold, use a bucket, not a thimble."
You also need to consider not just money in the big picture, but also your mind and body. All of your investments, whether involving physical health or finances, are important in the long run.
If you find yourself at a financial crossroads but want to become wealthy, Buffett recommends treating your body as if it were the only car you will ever own, because if well-maintained, slow and steady will win the race.
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