It’s always a treat when I see someone reiterate Warren Buffett’s simple rules of investment, as recently published on The Motley Fool. Essentially, invest in things that are: reasonably priced; have lasting power; produced and managed by good people; and — my favorite — easily understood.
First, let me make this clear: I’m not a billionaire like Warren Buffett. But I’ve dabbled in the stock market, and I’ve done okay, mostly thanks to following Buffett’s advice. I’ve had the most success when I buy affordable stocks from companies I know and trust, companies that I drive by everyday.
Stock market aside, I think Buffett’s advice is good for any kind of investment: a home, a car, a school, a job, a friend. Invest in the things that you know will last, those things that seem simple and right. With any investment, there’s always risk, but it’s worth if it you’re doing it with the best intentions.
Pic courtesy: Bill & Melinda Gates Foundation