Warren Buffett is arguably the greatest investor of all time. One thing that separates Warren Buffet from others is his down to earth approach in life, investing, and business. He is full of great quotes that can relate to millennials. Below are 8 quotes by Warren Buffett that millennials should know and follow.
# 1 “Never ask a barber if you need a haircut.”
This might be my favorite Warren Buffett quote of all time. In this situation the barber will always say yes. Even if you just got a haircut 3 days ago. The barber only makes money when people get their haircut. It’s important to take what professionals say with a grain of salt in order to better understand how they are compensated, and how much that is effecting what they are saying.
#2 “If you buy things you do not need, soon you will have to sell things you need.”
Life is bumpy, and you can’t predict the future. Fight the desire to let your lifestyle increase as your income increases. That money you aren’t spending can be the key to letting you get financially ahead.
#3 “Someone is sitting in the shade today because someone planted a tree a long time ago.”
Investing takes time, and riches do not happen overnight. If you plant a seed and water it regularly it will grow fruitfully. As millennials we have time on our side to watch our investments multiply.
#4 “You can’t make a good deal with a bad person”
Sounds simple enough right? But if you cannot trust the other person in the deal, the deal is not worth making.
#5 It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.
By spending time with people you inspire to become, you can learn from their habits, interactions, etc. Slowly you will start to act and think like them. Of course, this works the other way as well. If you view yourself as the best off in the group, you will still pick up the habits of others.
#6 “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Building a reputation takes a lot of time, but one bad move can destroy all that hard work. If you do things the right way you will have nothing to worry about.
#7 “Do not save what is left after spending; instead spend what is left after saving.”
Now with everything becoming automated this is easy to do. Send a certain amount of money (either a percentage or exact dollar amount) from your paycheck and have it deposited straight into your savings account. After a few pay cycles you will be in the habit of living off what is left in your checking account.
#8 “Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a fly epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”
Predicting the short term success of the stock market is difficult. Things will go up, things will go down. But, over the long term the stock market is a safe bet. Over the course of 20 years, the worst the stock market has ever performed was an average yearly return of 6%. Still a good return and that is the worst the stock market has ever done.